Macroeconomic confusing question TEST 2

Which type of unemployment do economists attempt to resolve using economic policy?

cyclical

If the cost of a typical market basket is 400 in 2018, 410 in 2019, and 405 in 2020, then during this period the economy is undergoing:

disinflation.

Which of the following groups benefits from an unanticipated rise in the inflation rate?

homeowners with fixed-rate mortgages

If a country experiences a rise in prices but produces the same quantity of output as in the previous year, its nominal GDP will _____ and its real GDP will _____.

increase; be unchanged

The natural rate of employment:

is the rate at which the actual inflation rate is equal to people's inflationary expectations.

Which of the following components is not used to measure GDP using the income approach?

net exports

If an economy is growing at 10%, how long will it take for $1,000 to turn into $4,000?

14 years

f real GDP increased from $10 billion to $11 billion from the first quarter of 2016 to the first quarter of 2017, but had increased by 4% from the fourth quarter of 2016 to the first quarter of 2017, the BEA would report first quarter of 2017 GDP growth as _____ using the year-over-year method and _____ using the annualized method.

40%; 16%

If frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 4%, the natural rate of unemployment is:

5%

Last year, the consumer price index (CPI) was 115 while the consumer price index for this year is 125. The rate of inflation is:

8.7%

Which of the following is not true regarding the informal economy?

Informal market activities do not contribute to the standard of living of citizens.

What information does the National Bureau of Economic Research use to declare that a recession has begun?

It focuses on turning points in key economic indicators.

Which of the following is a criticism of the national income and product accounts?

They do not capture most nonmarket economic activity.

A business cycle recovery that doesn't reach its long-term trend can lead to:

a double-dip recession.

Which of the following reasons does not contribute to a higher level of unemployment?

a reduction in union bargaining activities

Which of the following would be an example of factors that lead to long-run growth?

an increase in the percentage of the population earning graduate degrees

If the cost of a typical market basket in 2019 is 400 and the cost of a typical market basket in 2020 is 390, then during this period the economy is undergoing:

deflation

When the increase in prices goes from 5% to 2%, this is referred to as:

disinflation

For which of the following situations would the yield curve most likely predict that a recession will occur?

short-term interest rate = 4%; long-term interest rate = 3%

Janessa was laid off as a photo lab technician because of the lack of customers. She then found a job at a movie rental store, but was again laid off one month later when the store shut down. Janessa's bad luck staying employed is most likely due to:

structural unemployment

Labor includes all of the following factors EXCEPT:

the ability to use physical resources in creative ways to produce goods and services.