Macroeconomic TEST
The simplest circular-flow model shows the interaction between households and firms. In this model:
firms supply goods and services to households, etc
A worker classified as frictionally unemployed is one who is:
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Currently banks are issuing personal loans at an interest rate of 9%. If expected inflation is supposed to be 3%, then:
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If a country has a working-age population of 200 million, 120 million people with jobs, and 30 million people unemployement
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If a country has a working-age population of 200 million, 135 million people will jobs, and 15 million people
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Nominal GDP
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Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. During this last year, overall prices in the economy have increased by 4%. Given this information, Eli's real wage has:
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The costs arising from the way inflation makes money a less reliable unit of measurement are known as:
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Use Table 12-4. The unemployment rate is approximately:
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Use table 15-1. The approximate annual rate of inflation from year 2 to year 3 is ____ percent.
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Use table 15-1. The approximate annual rate of inflation from year 4 to year 5 is ____ percent.
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Increases in the average level of prices is called
inflation
Use Table 11-3. Nominal GDP in Year 2 is equal to:
$60
Is the CPI is 120 in Yer 1 and 150 in Year 2, then the rate of inflation from Year 1 to Year 2 is ______.
**** if i know
Which of the following is a LIKELY response to inflation?
People tend to make more transactions
The labor force is defined as
The total number of employed and unemployed workers
Which one of the following is correct?
Unemployment
During a typical recession:
Unemployment is rising and real GDP is falling
Deflation is when there is:
a decreasing aggregate price level
An example of cyclical unemployment is a(n):
autoworker who is laid off from an automobile company due to a decline in sales caused by a recession
To be counted as unemployed, one must:
be out of work and be actively looking for a job.
Donna was laid off by her employer at the beginning of 2008. She looked for a job for three months but could not find anything suitable. She then decided to volunteer for a soup kitchen and stopped looking for a job. Donna is considered to be:
broke
Last month Brent lost his job at the auto parts factory because his factory, like many others, relocated to Asia. Brent has been looking for similar factory jobs in his town but has found no openings. Brent is best classified as:
broke
When hyperinflation forces Pedro to change the price stickers on the books in his bookstore very frequently to keep up with the aggregate price level, economists say that Pedro is experiencing a:
broke time
The circular-flow diagram illustrates how households _________ goods and services and _______ factors of production
buy;sell
Real GDP is nominal GDP adjusted for:
changes in prices
Gross domestic product is defined as:
consumer spending + government purchases + investment spending + exports - imports.
Per-capita GDP is calculated by:
dividing a country's total GDP by its population
An intermediate good would be
lumber used to build a house
An example of investment spending would be:
purchase of a new productive machine??
unanticipated inflation
reduces the value of debt owned by borrowers
Cyclical unemployment:
rises during recession
The inflation or deflation rate is
the change in a price index divided by the initial value of the index
When there is deflation in the economy:
the general price level falls
The aggregate price level is:
the overall level of prices in the economy
Gross domestic product or GDP is:
the total dollar value of final goods and services produced in the economy in a given time period
Employment in the labor force is defined as:
the total number of persons actively working
Real GDP is:
the value of the production of all final goods and services adjusted for price changes