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Pima Midterm Macro Short Review Flashcards | StudBud
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Pima Midterm Macro Short Review
Pima Midterm Macro Short Review
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macroeconomics
Flashcards
47 cards
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Questions
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Answers
1
What is the 2011 inflation rate using the % change CPI method? Use 2010 as base year.
5%
100%
105%
.05%
2
What is the official unemployment rate of Travistan for this time period?
5.2%
5%
4.4%
4%
3
Which graph shows the change to the bread market after the price of wheat doubles? 2 = Δ
Panel B
Panel A
Panel C
Panel D
4
What is true about this economy? (QUIZ Character limit)
opportunity cost of producng more of either good is constant
Good A must be more expensive
opportunity cost of producng more of eithr good is increasng
Good B must be cheaper to produce
5
Who calculates the unemployment rate in the USA?
the congress
economists at universities
the BLS
the president
6
Which would be considered expansionary fiscal policy?
Congress eliminates loopholes on a progressive income tax
Congress prints less money
Congress enacts a law to spend $12B on a large project
Congress creates new workplace regulations
7
Which year would be the best to be frictionally unemployed?
1968
1964
1967
1961
8
Which graph shows an increase in equilibrium price and quantity?
Panel D
Panel B
Panel A
Panel C
9
Which year would be the best to be employed and wanting to purchase consumer goods?
1967
1961
1964
1968
10
Which group would be hurt by unanticipated inflation?
borrowers with 3% fixed rate mortgages
senior citizens who's income comes from stock portfolios
banks holding $2B in 3% fixed rate mortgages
workers who sell products with pricing power
11
What is going on in this economy?
Its in a recession
Its at equilibrium
It has elected unpopular leaders
It has demand pull inflation
12
Which statement is true?
the US entered a recession in 2008
China entered a recession in 2008
India's economy is larger than China's
China's economy is larger than the US's
13
What is Travistan's labor force participation rate?
80%
72%
76%
84%
14
What's this country's nominal GDP?
1200
2700
1700
2200
15
Which graph shows the change to the bread market after oven technology becomes faster? 2 = Δ
Panel B
Panel D
Panel C
Panel A
16
How would a Classical economist approach this problem?
Increase spending, lower taxes
Increase spending, raise taxes
Lower spending, lower taxes
Do nothing, in the long run things will even out
17
What is this country's nominal GDP?
4000
2600
3000
2500
18
Which graph explains the change to the DVD disc movie market in the past 7 years?
Panel B
Panel C
Panel D
Panel A
19
Which would be considered part of private investment in GDP calculations?
Joseph buys $1000 worth of Fiat/Chrysler stock
Starbucks opens 2,000 new locations
Ford closes a manufacturing plant in Michigan
The government invests in new university buildings
20
Which person would not count as part of the US labor force?
recent college graduate seeking employment
recently released felon
full time sandwich artist
person who chooses to take care of their elderly parents
21
During a period of prosperity, real GDP ______ and unemployment _______
increases, increases
decreases, decreases
increases, decreases
decreases, increases
22
In the circular flow model, who supplies the factors of production?
the government
Wall Street
households
firms
23
The economics definition of full employment is
0%
relevant during periods of seasonally adjusted employment
does not exist
includes the seasonal, structural & frictional unemployed
24
What do retirees and discouraged workers have in common?
both groups are non-winners
discouraged workers might work again someday
both are unemployed and not seeking work
both distort BLS statistics & confuse non-economists
25
What does a long run phillips curve look like?
bowed out shape at land, labor and capital levels
a circle
a vertical line at full employment
bowed out "L" shape
26
What is true about this PPF change
inputs for only good A became cheaper
inputs for both goods became cheaper
inputs for only good B became cheaper
this economy isn't using its resources efficiently
27
Which graph explains the change to the flat screen TV market in the past 7 years?
Panel C
Panel B
Panel D
Panel A
28
What is likely going to stop the world from becoming "over populated"?
the washing machine
lack of food and water in the developing world
declining fertility rates with increased wealth
the government
29
During an economic recession, real GDP ______ and unemployment _______
increases, increases
decreases, increases
increases, decreases
decreases, decreases
30
If the US exports $1.5 trillion and imports $2 trillion in a certain year, which is true?
US workers are lazy & the labor force has shrunk
the US economy is in deep trouble
the US is a net importing country
US manufacturing has decreased
31
What would happen if half of this country's discouraged workers became frictionally unemployed?
the unemployment rate would rise
the real GDP growth rate would fall
the unemployment rate would fall
the inflation rate would fall
32
What most likely caused this change? (QUIZ only allows so many characters in answers)
decrease in international trade
increase in the general level of technology
decreases in fertility rate w/ increases in elderly populatn
quantity theory inflation
33
As a country's unemployment rate falls from 10% to 7%, economists should expect...
cost push inflation
Republicans to get elected
demand pull inflation
real GDP to fall
34
Which is an example of a normative economic statement?
The economy functions better when workers are more educated
The unemployment rate in Arizona is 5.6%
The US Real GDP grew 2% last quarter
Inflation has not been a worry in the US for several years
35
What most likely caused this change to a macro-economy?
food prices increase due to cost push inflation
labor force increases due to increases in immigration
consumers enjoy easier access to credit & spend more
labor force participation rate falls
36
The nominal GDP of the United States is....
around $10 trillion
smaller than it should be because of Congress
smaller than its GDP per capita
larger than China's
37
The GDP deflator is a preferable way to measure _____ because it measures price changes of ____
real GDP growth rate, inflation
inflation, the same basket of goods across years
inflation, all goods purchased in a year
unemployment, labor
38
How would a Keynesian economist approach this problem?
Do nothing, in the long run things will even out
Increase spending, raise taxes
Lower spending, lower taxes
Increase spending, lower taxes
39
What happened here?
demand pull inflation
supply side growth
a normal recession
stagflation
40
Which is the biggest issue in the 2018 labor market in the US?
cyclical unemployment
unanticipated inflation
frictional unemployment
structural unemployment
41
Which would most likely cause a recession?
increasing imports
falling inflation
falling unemployment
decreasing consumer spending
42
The largest part of GDP is?
black market spending
government spending
inflation
consumer spending
43
Which graph...bread market after consumers think bread price will double next month? 2 = Δ
Panel B
Panel A
Panel C
Panel D
44
Which of the following would decrease unemployment in a country?
decreased net exports
decreased imports
decreased investment
increased spending
45
How do economists compare country wealth?
real GDP growth rate
nominal GDP - inflation
real GDP per capita
Old prices times new quantities
46
What is the reason used goods aren't part of GDP calculations?
only poor people buy them
Economists want to fool Americans about the size of real GDP
only hipsters buy them
They were counted in the year they were first sold
47
Which is most appropriate about normative economic statements?
They need to be true in every country worldwide
They need to be backed up with positive economic data
They need to be 100% correct
They need to have the support of the Republican party
