Refer to the above figures. If government policy can be used to affect the level of demand in the economy, these figures suggest that government policy:
can affect the level of output in the very short run, when prices are stuck.
The two topics of primary concern in macroeconomics are:
short-run fluctutations in output and employment, and long-run economic growth.
(Consider This) The U.S. recession which occurred in 2008 and 2009 represented a case where:
prices were relatively sticky and most of the impact was on total output.
Which of the following is an example of a supply shock?
A dramatic increse in energy prices increase production costs for firms in the economy.
Why are high rates of unemployment of concern to economists?
There is lost output that could have been producced if the unemployed had been working.
Which of the following statesments best describes price flexibility in the economy?
Prices tend to be sticky in the short run, but become more flexible over time.
occur when sellers face unexpected changes in the availablity and/or prices of key inputs.
Higher rates of unemployment are linked with:
higher crime rates as the unemployed seek to replace lost income.
Shocks to the economy occur when:
actual economic events do not match what people expected.
Refer to the figures. As the economy moves from the very short run to the longer run, we would expect:
the representation of the economy to move from Figure B to Figure A.
Answer the question on the basis of the following data. All figures are in billions of Dollars. Net domestic product is:
The GDP tends to:
understate economic welfare because it does not take into account increases in leisure.
Net exports are:
exports less imports
Real GDP measures:
current output at base year prices
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a 5-year period are as follows. Real GDP for year 5 is:
Answer the question on the basis of the following national income data for the economy. (All figures are in billions of dollars) The gross domestic product for the above economy is:
Refer to the above diagram. The base year used in determining the price indices for this economy:
Answer the question on the basis of the following data. (All figures are in billions of dollars) GDP is:
If depreciation (consumption of fixed capital) exceeds gross domestic investment, we can conclude that:
net investment is negative
Use the following table for a hypothetical single-product economy, Real GDP in year 3 is:
In the U.S. economic-growth experience:
most capital is complementary to labor.
Suppose that an economy is initially operating at a point on its PPC. If it then experiences an expansion in its production capacity, but its total spending does not rise as its capacity, the economy will end up:
inside its PPC
Economic growth in the U.S. since 1950 has been characterized by:
An average growth rate in real GDP that is faster than the growth rate of the population.
A nation's real GDP was $250 billion in 2009 and $265 billion in 2010. Its populatioin was 122 million in 2009 and 125 million in 2010. What is the growth rate per capita in 2010?
Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 3.5%; scenario B has an average annual growth of 4.5%. The nation's real GDP would double in about:
20 years under scenario A versus 16 years under scenario B
In the periods 1995-2001 and 2001-2007, U.S. real GDP grew at the average annual rates of about:
3.8% and 2.6% respectively
The shift of labor out of agriculture to industry in the U.S. has tended to:
Increase labor productivity
Which of the following is the so-called efficiency factor of economic growth?
Reaching full production potential
The table below shows the quantity of labor (measured in hours) and the productivity of labor (measured in real GDP per hour) in a hypothetical economy in three different ways. In year 2, the economy's real GDP was:
Growth-promoting instituational structures include the following, except: