Macro 2
test 2 question 26
2.5 percent
If real GDP per capita doubles between 2005 and 2020, what is the average annual growth rate of real GDP per capita?
4.7%
Which one of the following is an example of a worker experiencing cyclical unemployment
a freightliner employee that got laid off because of the recession of 2007-2009
If consumers decide to be more frugal and save more out of their incomes, then this will cause
a shift in the supply for loanable funds to the right
cyclical unemployment is the result of
a slowdown in the economy
Which of the following governments provisions would help increase the accumulation of knowledge capital?
education subsides, copyrights, patents
Technological improvements are more likely to occur if
entrepreneurs are compensated for taking risks with higher profits
Most economists believe that the return of _____ during the 2007-2009 recession is a key reason why the recession was so severe.
financial instability
creative destruction means that
firms develop new products that replace old products in the economy, thereby encouraging economic growth
A student who just graduated from college but has not found a job would most likely be
frictionally unemployed
The percent increases in the CPI from one year to the next is a measure of the
inflation rate
Which of the following increases labor productivity?
inventions of new machinery, equipment, or software
When the government runs a budget deficit, we would expect to see that
investment will fall
an unemployment insurance program has which of the following effects?
it increases the amount of time spent searching for a job
The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as
labor productivity
By offering more generous unemployment insurance programs, European countries can expext
longer periods of unemployment for their workers
Someone who is available for work but has not actively looked for work in the previous four weeks would be classified as
not in the labor force
a consumer price index of 160 in 1996 with a base year of 1982-1984 would mean that the cost of the market basket
rose 60% from the cost of the market basket in the base year
Globalization refers to
the process of countries becoming more open to foreign trade and investment
Which of the following explains the changes in the U.S. adult male labor force participation rate since 1948?
younger men are remaining in school longer as compared to the past
when the economy reaches a tough in a business cycle, which of the following will occur?
Income, production, and employment will begin to rise
Since the 1950s,
U.S. business cycle fluctuations have become milder
Which of the following is not one of the three sources of technological change?
additional amounts of existing capital
Which of the following will increase investment spending in the economy, all else being equal?
an increase in the federal government surplus
An increase in cyclical unemployment will result in
an increase in the unemployment rate
Which of the following would increase the unemployment rate?
an increase in unemployment insurance payments
Which of the following price indices comes closest to measuring the cost of living of the typical household?
consumer price index
Most of the unemployment that occurred during the Great Depression was
cyclical unemployment
If labor productivity growth slows down in a country, this will
slow down the increase in real GDP per capita
According to a study by economists Raymond Fisman and Edward Miguel, as the level of corruption in a country increases,
so does the number of parking violations by the country's United Nations delegates
Because of the productivity slowdown in the United State form the mid-1970 through the mid-1990s
the GDP per capita grew more slowly
Which of the following is not a reason why low- income countries might experience low economic growth?
the country has a good education system
