UNIT 2 Macron
16-22 are part of the business cycle for questions
16- AB, Real GDP
17
A, Peak
22
AC, time
19
B, Trough
20
C, expansion
18
D, Recession
All else equal, a sale on chicken would cause a move from
DA a to DB
(Price/Quantity graph) All else equal, an increase in the income of the buyers who consider turkey to be an inferior good would cause a move from
DA to DB
All else equal a large number of people becoming vegetarians would cause a move from
DA to DB
All else equal, buyers expecting turkey to be more expensive in the future would cause a current move from
DB to DA
All else equal, the approach of Thanksgiving would cause a move from
DB to DA
A movement upward and to the left along a demand curve is called a(n)
Decrease in quantity demanded
21
Full employment
Which of the following will be included in the current years calculation of GDP
Income earned as a lifeguard at a summer camp
Two good are complementary when a decrease in the price of one good
Increases the demand for another good
A likely example of complementary goods for most people would be
Pens and pencils
An increase in quantity demanded
Results in a movement downward and to the right along a demand curve
A decrease in quantity demanded
Results in a movement upward and to the left along a demand curve
If the nominal GDP for a given year is 500 billion and the real GDP for that year is 400 billion then which of the following must be true
The GDP deflator is 125
demand-pull inflation is most likely to occur when
There is an increase in consumer spending
All else equal, sellers expecting the price of turkey to rise in the future would cause a current move from
X to Y
All else equal, the premature deaths of thousands of turkeys would cause a move from
X to Y
All else equal, a decrease in the price of the grain fed to turkeys would cause a move from
Y to X
All else equal, an increase in the productivity of turkey farmers would cause a move from
Y to X
If a decrease in income increases the demand for a good, the good is
inferior good
The natural rate of unemployment is
the sum of structural unemployment and frictional unemployment.
