Macroeconomics ch17
Which of the following is a broad indicator?
Real gross domestic income
Which economic indicator tells you how fast wages and benefits are rising?
the employment cost index
An economy's potential output level is:
the output that is possible when all resources are fully employed
Refer to the following table. What was the approximate output gap in 1998?
-1.2%
Refer to the following table. What was the approximate output gap in 1974?
-6.5%
Refer to the following table. What was the approximate output gap in 1999?
1.9%
if an economy has a positive output gap of 1.5%, this means:
GDP is 1.5% above potential GDP
Which economic indicator tells you about the future expected profits of businesses?
S&P 500
Which of the following will fall when the economy is expanding?
applications for unemployment benefits
The Great Moderation refers to the:
decreased volatility of the US economy
Refer to the data dashboard shown. Which indicator tells you how fast wages and benefits are rising
employment cost index
Based on Okun's rule of thumb, if you forecast that the output gap will decline from 0%to -3%
fall by 1.5%
according to oakun's rule of thumb, for every 1% fall in the actual output below potential output, the unemployment rate:
falls by 1%
Which of the following will probably rise when the economy is in a recession?
initial unemployment claims
Which of the following correctly describes the business cycle?
it is the fluctuations of GDP around the potential output
The four stages of the business cycle are:
peak, recession, trough, and expansion
Refer to the data dashboard shown. Which indicator is a cross-check on GDP?
real GDI
Suppose that an economy is in a recession. you would expect to see the unemployment rate:
rise above the equilibrium unemployment rate
What kind of data adjustment removes the effect of sales spikes due to holiday season?
seasonally adjusted data
An example of a leading indicator is:
the stock market
Which of the following is a narrow indicator?
the stock price for JPMorgan chase & co
