Macroeconomics Packet Questions

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP A accountant pays a tailor $175 to sew a suit for her

C

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP A family pays a contractor $150,000 for a house he built for them this year

C

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP You pay college tuition to attend college

C

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP You spend $10.00 to see a movie

C

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed A computer programmer is laid off because of a recession

C

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed Slumping sales lead to the cashier being laid off

C

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed Workers are laid off when the local manufacturing plant closes because the product made there isn't selling during a recession

C

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP You pay $800 a month to rent an apartment

C- it is a living service

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed A literacy editor leaves her job in NY to look for a new job in San Francisco

F

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed An individual refuses to work for minimum wage

F

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed an unemployed college graduate is looking for his first job

F

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP The government increase its defense expenditures buy $1,000,000,000

G

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP Consumer electronics corporation Apple Inc. builds a new factory in the United States

I

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP Ford Motor Company buys new auto-making robots

I

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP At the end of a year, a flour-milling firm finds that its inventories of grain and flour are $10,000 higher than its inventories at the beginning of the year

I- it is counted for because it is the year produced the item was produced that is accounted for in GDP

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed a college graduate works at a job that does not require a college education

N

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed an individual has been laid off during a recession and has been looking for work unsuccessfully for so long that he has finally given up actively seeking a job (note: this person is known as a discouraged worker)

N

The government makes a $300 Social Security payment to a retired person

NC- SS is not accounted for

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP A family pays $75,000 for a house built three years ago

NC- can't count bc it was not built this year

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP Parents work hard caring for their two children

NC- nothing is being produced

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP R.J Reynolds buys control of Nabisco

NC- nothing is being produced

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP You buy McDonald's stock for $1,000 in the stock market

NC- stock is not accounted for

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed A high school graduate lacks the skills necessary for a particular job

S

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed A skilled glass blower becomes unemployed when a new machine does her job faster

S

F- frictional unemployment C- cyclical unemployment S- structural unemployment N- someone who is not unemployed Advances in technology make the assembly line workers jobs obsolete

S

C- Consumption Spending I- investment spending G- government spending Xn- net exports NC- if it is not counted for as a part of GDP You buy a new Toyota that was made in Japan

Xn

Is a monthly check received by an economics student who has been granted a government scholarship counted as a part of GDP?

no because nothing is produced; transfer payment

Is a social security check from the government to a retired store clerk counted as a part of GDP?

no, SS is not accounted for in GDP

is a plumber's purchase of a two year old used truck counted for as a part of GDP?

no, has already been calculated

IS a Chevrolet's purchase of tires to put on the cars they are producing counted fora s a part of GDP?

no, intermediate good

is the services of a barber cutting his own hair counted for as a part of GDP?

no, no exchange; he did it to himself

is income received from the sale of Nike stock counted for as a part of GDP?

no, stocks do not count; nothing produced

is cashing a US government bond counted for as a part of GDP?

no, transfer payment

Is a farmer's purchase of a new tractor counted for as a part of GDP?

yes, final consumer

is a barber's income from cutting hair counted for as a part of GDP?

yes, final service

is the governments purchase of a new submarine for the Navy counted for as a part of GDP?

yes, gov. spending on a final good