AP Econ ch. 21/ 23
an increase in the price of forklifts imported into the US from Belgium will
have no effect on the consumer price index or the GDP deflator.
suppose a country produces only two goods, picca and soda. Given the information in the table below, nominal GDP real GDP and the GDP deflator in 2005 are
260 130 200
the value of the GDP in 2010 in terms of 2000 prices was
$600
if the negative GDP gap were equal to 6% of the potential GDR the actual unemployment rate would exceed natural rate of unemployment by
3 percentage points
if 2010 were made the base year for the GDP price deflator index, the value of the index number for 200 (rounded to the nearest whole number would be)
42
the unemployment rate in an economy is 8%. the total population of the economy is 250 million and the size of the civilian labor force is 150 million. The number of employed workers is
138 million
which has helped decrease the natural rate of unemployment in the United States in recent years?
a smaller portion of young workers in the labor force
The labor force includes those who are
able and willing to work
in 2010 the us had a trade deficit of $600 billion therefore
americans consumed more than they produced.
which of the following shifts the production possibilities curve outward?
an increase in labor productivity
insufficient total spending in the economy results in
cyclical unemployment
if GDP is declining the economy is most likely in which part of the business cycle?
contradictory
if the natural rate of unemployment is 5.2% and the actual rate of unemployment is 5.7% then by definition there is
cyclical unemployment amounting to 0.5% of the labor force.
the full employment unemployment rate in the economy has been achieved when
cyclical unemployment is zero
the unemployment data collected by the bureau of labor statistics have been criticized because
discouraged workers are not considered
if the cost of the basket of goods and services the bureau of labor statistics uses to calculate the consumer price index rises from $200 in the base period to $400 in the current period, then the consumer price index
equals 200 in the current period
an economy in recession can return to full employment in the long run through
expansionary monetary policy
a worker who has quit one job and is taking two weeks off before reporting to a new job is an example of
frictional unemployment
the natural rate of unemployment
includes structural and frictional unemployment
classical economists believe
int hat the quantity theory of money that both the velocity and the quantity of good and services per period are fairly stable.
The GDP deflator
is used to calculate inflation rises and its alternate to the CPI
which of the following persons is considered to be unemployed?
mary, who has quit her job to look for another one.
the amount of unemployment that an economy normally experiences is called the
natural rate of unemployment
production and employment would be least affected by a severe depression in which type of industry?
nondurable consumer goods
Imagine someone who is not looking for work because they are embarrassed in the interview process when their inability to read is revealed. However this person would take almost any job that was offered. according to the bureau of labor statistics this person is
not in the labor force
most economists believe that the immediate determinant of the levels of domestic output and employment is
the level of total spending
when products improve in quality the CPI will
overestimate the inflation rate
according to experts the CPI
overstates increases in the cost of living
who of the following are included in the bureau of labor statistics employed category?
part time workers and workers on vacation
which of the following policies is most likely to bring about economic growth in the long run?
promoting improvements in the education of the population
suppose taxes are cut in an economy that is in equilibrium at full employment. In the long run the tax cut will
raise the price level
if the cpi goes to 150 from 120 then prices have
risen 25%
a worker who loses a job at a petroleum refinery because consumers and business firms switch from the use of oil to the burning of coal is an example of
structural unemployment
if global warming raises temperatures so high that snow can never again exist anywhere, snow ski instructors will experience
structural unemployment
unemployment that results because the job skills possessed by those in some labor markets may be insufficient to give a job to everyone who wants one is called
structural unemployment
some people who are employed or who are not making serious effort to find employment will report themselves as unemployed. some people who want to find work will be counted as out of the labor force.
the first fact tends to make the reported unemployment rate higher than the actual unemployment rate, whereas the second fact tends to make the reported unemployment rate lower than the actual unemployment rate.
which of the following is not a requirement for the bureau of labor statistics to place someone in the unemployed category?
the person must not have been fired from their previous job
if technology makes production less expensive and at the same time exports decrease, which of the following will result with certainty?
the price level will decrease
potential GDP will fall, certeris paribus, if
the retirement age is lowered
You buy 100 shares in the XYZ company and your broker charges you $29.95
this will increase GDP by $29.95
which of the following is not a type of unemployment?
traditional
the burden of unemployment is least felt by
white collar workers
