Macroeconomics Final Exam Review
The index most widely used by the government and the private sector to measure changes in the cost of living is the
Consumer Price Index
Suppose that you are available for work but have not looked for a job at least for the last 4 weeks because you believe that no jobs are available. You would then be counted as a
Discouraged Worker
When demand increases and the demand of the curve shifts to the right, equilibrium price _____ and equilibrium quantity _____.
Increases; increases
Which of the following covers the study of the economy as a whole, including topics such as inflation or unemployment?
Macroeconomics
According to the law of supply
There is a positive relationship between price and quantity supplied AND as the price of a product increases, firms will supply more of it to the market
The GDP equation is
Y = C + I + G + NX
During periods of poor economic performance, real GDP
declines and unemployment rises
When there are sustained increases in real GDP over time, we say the economy is undergoing
economic growth
When the supply decreases and the supply curve shifts to the left, equilibrium price ____ and equilibrium quantity ____
increases; decreases
The principle of opportunity cost
is applicable to all decision making
A nation's net exports consist of
its exports minus its imports
economists define the unemployed as individuals who are
not currently working but are actively looking for work
Which of the following is counted in this year's GDP?
only this year's production of goods and services
Scarcity can be best defined as a situation in which
resources used to produce goods and services are limited while wants are unlimited
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirement of jobs is called
structural unemployment
Gross domestic product is best defined as
the market value of all final goods ad services produced in a country during a period of time
which of the following groups is included in the labor force?
the unemplyed
Real GDP is
the value of goods and serviced evaluated at base year prices
According to the law of demand
there is an inverse relationship between price and quantity demanded
