Econ Final (Test 2)

the equation for GDP using the expenditure approach is what

GDP= C+I+G+EX-IM

true or false, the GDP of the US exceeded 17 Trillion dollars as of the most recent date

Flase

if congress increases increases GOV spending it is using which policy

fiscal policy

Labor force participation rate: 75% Total population 16 yrs of age and older: 200Mil unemployment rate: 10% what is the labor force

.75X200,000,000=150,000,000

employed: 14000 Unemployed; 3000 not in the labor force: 4000 what is the amount of ppl in the labor force

14000

what year is the GDP delator base year

2009

during the great depression, the unemployment rate rose to what

25%

if the labor force is 50Mil and 48Mil are employed what is the unemployment rate

4%

the Humphrey-Hawkins act formally established a specific unemployment target for the economy of

4%

estimates of the natural rate of unemployment in the US rage from

4% to 6%

in the united sates in February 2014, the highest ethnic unemployment rate was for ________

African- Americans

prices for used automobiles produced in the USA is include in the calculations of which Price Index

CPI

the US state in the midwest with the highest unemployment rate reported in February 2014 is ________

Illinois

Which country has the largest GDP in the world

United States

a farmer buys a new tractor from John Deere to use on her cotton farm. This tractor is include in GDP as

a durable consumption good

in a business cycle, a trough represents the end of what

a recession

the index most widely used to measure inflation is what

consumer price index

what is the single larges expenditure component in GDP

consumption

when calculating GDP, exports are ________ and imports are ____________

exports are added and imports are subtracted

true or false, IL is a right to work state

false

true or false, all economic activities are include in the GDP

false

what can change the quantity of money in the economy

federal reserve

when an economics professor quits their job at a university and starts looking for a better job in another university their are what type of unemployed

frictionally unemployed

Nominal GDP measures the value of all goods and services in what

in current dollars

why is GDP not a perfect measure of social welfare and the society's economic well-being

it does not say anything about the distribution of income, GDP accounting rules do not adjust for production that caused negative externalities, and it does not include all economic activities in the economy

if the labor market becomes more efficient so that the unemployed are more quickly matched with jobs what will happen to the unemployment rate

it will decrease

the February 2014 BLS unemployment rate in the US was reported at

neither 5.5, 6.0, nor 7.1

aggregate behavior is what

neither the behavior of a selected household and firm, the behavior of each individual, nor the behavior of all household and firms together

are discouraged workers considered part of the labor force

no

would the value of a 2008 boat you purchase from a boat dealer in 2013 be counted in the 2013 GDP

no

if the GDP deflator is greater than 100 what does that mean

nominal GDP is greater than the real GDP

a period during which aggregate output rises in known as a(n)

recovery

legalizing all forms of illegal activities would do what to the underground economy and what to the GDP

reduce the size of the underground economy and increase measured GDP

The official BLS labor participation rate fro February, 2014 did what from previous months

remained unchanged

The official BLS unemployment rate for February 2014 did what from the previous month

rose

if auto worker in Ohio loses her job because of the company relocated the plant to another country is what type of unemployment

structural unemployed

the economy is in a recession and the housing market is in a slump. as a result of this, a real estate firms lays off half of its real estate agents, what type of unemployment is this

structural unemployment

the natural rate of unemployment is generally thought of as what

sum of frictional unemployment and structural unemployment

if there is unemployment in the labor market what does it imply

that there is an excess supply of labor

the broadest based price index available is what

the GDP deflator

in which basic market would DVDs be traded

the goods and services market

the trend of the economy is the same as what

the long run growth path of the economy

real GDP is gross domestic product measure in what

the prices of a base year

social security retirement benefit is an example of what type of payment

transfer payment

true or false, contractionary fiscal policy includes rising taxes

true

true or false, during periods of inflation, nominal GDP is always greater than real GDP

true

true or false, macroeconomics is concerned with inflation and deflation, output growth and unemployment

true

true or false, since 2000, the role of the GOV in the US economy, as measured in the components of GDP, has increased more than any other segment

true

true or false, when more people who are not working start looking for jobs, the labor force participation rate increases

true

in the circular flow diagram, the different payments made by firms to households include

wages and profits