macroeconomics usa test prep

This is the total amount of goods and services consumers are willing to buy.

Aggregate Demand

the total supply of all the goods and services available in an economy

Aggregate Supply

This refers to the changes in economic activity of a company over the long term.

Business Cycle

This is the person or persons who purchase a good or service.

Buyer

Unemployment that is caused by a downturn in the business cycle

Cyclical Unemployment

This is a general decrease in the level of prices.

Deflation

This a general economic term that refers to prolonged period of economic decline with large numbers of unemployed, shrinking incomes, and general economic hardship.

Depression

This is the increase in the value of the goods and services produced by an economy.

Economic Growth

This is a period of growth in an economy.

Expansion

Unemployment caused by people changing jobs.

Frictional Unemployment

The total value of all the goods and services produced within a country in a given year

Gross Domestic Product

This is the rapid, "out of control" rise in prices, which is different from a general and gradual increase in priced.

Hyperinflation

These are goods that are brought into one country from another.

Imports

Which choice BEST describes what might happen to unemployment rates if retirement ages were raised?

In the short term, unemployment rates would rise drastically.

A rise in the general level of prices.

Inflation

Which of these statements is NOT true of the workforce in the United States today?

It is becoming less mobile.

This is the study of an economy as a whole.

Macroeconomics

Can a nation have a negative GDP?

No, because GDP measures the market value of products and that can't be negative.

the point in a business cycle when production, employment, and wages are at their highest

Peak

This is a decline in a country's GDP for two or more successive quarters. It is usually characterized by a significant decline in economic activity.

Recession

Unemployment that is caused by changes in technology or reduced demand for certain products.

Structural Unemployment

In which situation might GDP (gross domestic product) NOT be an accurate indicator of the health of a country's economy?

The country has suffered a disaster and is receiving financial aid from overseas.

the lowest point in a business cycle; demand, production, and wages are at their lowest level

Trough

This is the lack of jobs for willing workers.

Unemployment

This term refers to the percentage of the civilian workforce who are available for a job but do not have one.

Unemployment Rate

Which of these would deter inflation?

a decrease in the price of securities

In a free-enterprise economy, the LEAST LIKELY effect of economic growth would be

an increase in poverty levels.

inflation is most harmful to

creditors.

If consumers purchase fewer goods and services, then a likely outcome for our economy is

decreasing factory orders.

The federal government uses government spending and tax rates to help control recessions and encourage economic activity. This is called

fiscal policy.

Which term is used to describe a situation where most people who are looking for work are able to find a job?

full employment

If a nation currently has a budget deficit, their income is not covering the cost of running their country and cuts may have to occur for public services and social welfare. If this budget is not revised, what could be a possible result of this situation?

growing deficts and debt

Which of these is an indicator of increased economic growth in a nation?

increased aggregate demand

High inflation could discourage people from taking college classes because

prices for books and tuition would be rising.

If consumers increase their purchases of goods and services, then a likely outcome for our economy is

rising GDP.

Which of these would be counted when calculating the GDP of the United States?

selling price of goods produced in Michigan

While inflation is a rise in the general level of prices, economic growth is a

sustained period during which the nation's total output of goods and services increases.

If a country had a CPI of 104.0 last year and a CPI of 101.0 this year, then

the average prices of goods and services decreased between last year and this year.