MT Econ
Using the information in the table provided, which of the following is the correct calculation for GDP in 2008?
$12,200
The value of Year 4's output in real dollars is:
$30
A process the brings the inflation rate down, is called:
disinflation
The official unemployment rate reported by the government may tend to understate the amount of unemployment by:
excluding discouraged workers who are not actively seeking employment
Goods and services sold to other countries
exports
Which of the following represents the best scenario for a bank lending its money to a consumer?
fixed interest rate of 8% with 1% inflation
Anna recently moved to Boston...
frictionally unemployed
spending on productive physical capital, such as machinery and construction of structures, and on changes to inventories
investment spending
The threat of future inflation:
makes people reluctant to lend money for long periods
the real cost of changing a listed price
menu costs
Unemployment rates tend to decrease when:
there is an expansion in the economy
If a country has a working population of 200million, 135 million people with jobs....
140 million
If the actual unemloyment is 7% and the natural unemployment is 5%, then the cyclical unemployment rate is:
2%
Which o the following annual rates of inflation would most likely be called hyperinflation?
2000%
If the cost of a market basket is $150 in Year 1 and $200 in year 2, the price index for Year 1 with a Year 2 base is:
75
A measure of the cost of a market basket intended to represent the consumption of a typical urban American family of four. It is the most commonly used track inflation in the United States
Consumer Price Index (CPI)
unemployment resulting from the business cycle; equivilently, the difference between the actual rate of unemployment and the natural rate of unemployment
Cyclical Unemployment
nonworking people who are capable of working but have given up looking for a job given the state of the job market
Discouraged Workers
Unemployment due to time workers spend in job search. Voluntary.
Frictional Unemployment
GDP divided by the size of the population; equivaent to the average GDP per person
GDP per capita
payments by the government to individuals for which no good or service is provided in return
Government Transfers
The total value of all final goods and services produced in the economy during a given period, usually a year
Gross domestic product (GDP)
Calculate by how much the prices changed between 2007 and 2008
Prices decreased by 4%
A measure of the cost of a typical basket of goods and services purchased by producers
Producer Price Index (PPI)
The wage rage divided by the price level
Real Wage
People who are actively looking for work but are not currently employed
Unemployed
Costs of inflation arising from the way inflation makes money a less relible measurment of value
Unit-of-Account Costs
The circular-flow diagram illustrates how households _____ goods and services and _____ factors of production.
buy; sell
Inflation is when there is:
a rising aggregate price level
To be counted as unemployed, one must:
be out of work and be actively looking for a job
Real GDP is nominal GDP adjusted for:
changes in prices
The consumer price index reflects th:
changes in the prices of goods and services typically purchased by consumers
Sam who is a 55 year old steel worker for 30 years...
structural unemployment
Cyclical unemployment is the result of:
the business cycle
Inflation can be measured by:
the percentage change in the CPI