ECONunit1

The unemployment rate measures:

Kathryn chooses to go to college full-time rather than to work. Kathryn:

Inflation exists whenever:

If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is

The official unemployment rate may not reflect the true state of unemployment because:

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:

Structural unemployment occurs when:

When unemployment rises above the natural rate it reflects the existence of _______ unemployment.

If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor:

Why are creditors harmed by unexpected inflation?

IF the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is

Which of the following would not be counted as a final good for inclusion in GDP?
A. a pieve of glass bought by a consumer to fix a broken window
B. a sheet of glass purchased by General Motors fo rthe side window of a car
C. a sheet of glass produced this year and ending up in the inventory of a retail hardware store
D. all of the above are counted

Residental construction is generally included in which category of GDP

If real GDP decresed by 1% and nominal GDP increaded by 2%, then output:

If nominal GDP increased from $4,500 billion in 2010 to $5,000 billion in 2011 and the GDP deflator increased from 100 to 105 over the same time period what would the 2011 real GDP equal expressed in terms of 2010 dollars?

An increase in the stock capital:

A country will roughly double its GDP in 20 years if its annual growth rate is 

Which of the following factors contribute to economic growth?
A. growth in physical capital
B. technological advances
C. an increase in the productivity of labor
D. all of the above

As more capital per worker is added, a per worker production function generally becomes:

In the 1700s, Reverent Thomas Malthus predicted that:

GDP is:

The formula from the expenditure method indicated that GDP is equal to:

Which of the following is an example of an intermediate good?
A. a pair of jeans sold by a clothing retailer
B. cloth sold to a suit manufacturer
C. a share of Wal-Mart stock
D. a used Ford Mustand sold from one neighbor to another

Residential construction is generally included in which category of GDP?

Why has nominal GDP increased historically more rapidly than real GDP in th eUnited States?

Labor force=

Problems with measuring Unemployment rate

Why Unemployed?

Reasons for Unemployment (factors that increase the Unemployment)

Problems with the CPI (Consumer Price Index)

GDP=

Income Approach

Nominal GDP

Real GDP

Productivity of Labor=

Determinants of Economic Growth

Society's major economic goals

The 3 major macroeconomic goals of nearly every society are

Economic growth is measured by changes in

High rates of unemployment

The unemployment rate is the number of people officially unemployed divided by

The labor force consist of

Discouraged workers are consided

Which of these groups tends to hae the lowest unemployment rate?

The largest fraction of those counted as unemployed is due to 

The offical unemployemtn rate may overstate the extent of unemployment because

If unemployment benefits increase and encourages more people to claim they are looking for work when they really are not, then the measured employment rate will

After looking for a job for more than 8 months, Kyle became frusturated and stopped looking. Economists view kyle as

Frictional unemployment is

Unemployment caused by a contraction in the economy is called

A federal program aimed at retraining the unemployed workers of the decling auto and steel industries is designed to reduce which type of unemployment

When unemployment rises above the natural rate, it reflects the existence of _________ unemployment.

When an economy is operating at full employment,

The natural rate of unemployment would increase when which of the following increases?

If action's labor force receives a significant influx of young workers,

Which of the following reasons why wages may fail to bring the quantity of labor demanded into balance with the quantity of labor supplied?

At minimum wage, the quanity of labor supplied _____ because more people are willing to work at a higher wage.

At minimum wage, the quantity of labor demanded ______ because some employers wold find it unprofitable to hir low-skilled workers at the higher wage

Efficiency wages

Unemployment insurance

If unions are able to increase wages through collectvie bargaining, the 

When would consumers and producers experience increased difficulty in coordinating their plans and decisions?

Teh CPI is a measure of

If the consumer price index was 100 in the base year and 110 in the following year, the inflation rate was

The CPI overestimates changes in the cost of living because

Which measures of inflation tend to overstate it?

Inflation can harm

Inflation will be least harmful if

Unexpected inflation generall benefits

The costs of inflation include

If the nominal interest rate is 9% and the inflation rate is 3%, the real interest rate is 

A business cycle reflects changes in economic activity, particularly real GDP. The stages of a business cycle in order are

The contractionary phase of the business cycle is characterized by

A _______ is a period of falling real output and is usually accompanied by rising unemployment and decling business and consumer confidence

GDP is defined as the

An example of an intermediate product is 

The expenditure measure of GDP accountning is the total of

Investments include

Government purchases include government purchases of 

A negative amount of net exports in the GDP expenditures accountin gmeans

The largest category of GDP is __________, and the most unstable category of GDP is _________

In the income approach to measuring GDP, factor payments include

Examples of factor payments are

What is subtracted from GDP to get national income

Disposable income is

Disposable personal income will increase when

Nominal GDP is 

Nominal GDP differs from the real GDP in that

Real GDP in base year dollars equals

If real GDP increases and population increases, then real GDP per capita 

Important factors that are excluded form GDP measurements include

If country A has a bigger underground economy than country B, and country A's citizens work fewer hours per week than the citizens of country B, other things being equal, then

In __________ countries, where significant amount of food and cloting output is produced in the home, the failure to inlcude non-market economic activity in GDP is a serious deficiency

Economic growth refers to an ______ in the output of goods and serices in an economy. The greater the economic growth, the _____ goods citizens and their descendants will have to consume.

Economic growth is usually measured by the annual percent change in

How much the economy can produce at its natural rate of output depends on

An economy's production possibilities curve will shift outward over time if

According to the Rule of 70, if a nation grows at a rate of 5 percent per year, it will take roughly ______ for national income to double

What will lead to economic growth?

In the long run, the most important determinant at a nation's standard of living is

According to Paul Romer, a new growth economist

If a country increased its saving rate,

High rates of saving and investment in a country

Economic growth tends to be greater in countries where

In a country that has an unstable government or judiciary, would you expect to see more or less entrepreneurial activity?

Thomas Malthus's model assumed that

Malthus