an economy characterized by increasing GDP, low unemployment, &increasing inflation.Conclusion?

This economy is in the expansion phase of the business cycle

Using this diagram, what outcome can be predicted if individuals stopped purchasing goods?

Businesses would experience all of these outcomes

In 2 years, Parthia has a steep decline in unemployment,rise in real GDP, &stabilized prices...

They are in the middle of a boom period

For credit worthiness, who is likely to pay the GREATEST finance charges on the same amount?

James, who always pays the minimum each month

Which of these is MOST LIKELY to lead to inflation?

an increase in the costs of production

Define aggregate demand

the demand for all goods/services within a nation

Can a nation have a negative GDP?

No,b/c GDP measures the valueof products&that isn't negative

Which of these is MOST LIKELY a result of a high unemployment rate in the United States?

greater gov't expenditures for transfer payments (ie welfare

Define aggregate supply

the supply for all goods/services within a nation

Which of the following benefits from the declining value of money during high inflation?

a person who has borrowed money

When people use their resources so that marginal benefits exceed marginal costs, they

make rational economic decisions

The BEST example of structural unemployment in an economy is someone

whose job skills do not match the economy's needs

Which worker BEST illustrates the problem of structural unemployment?

a steelworker whose skills are no longer marketable

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Macroeconomics Review #1

23 termsStudBud Administration186 plays

Review over SSEMA 1

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Questions 23

Answers

1
Which of these is MOST LIKELY result of apartment rent control?
a shortage of apartments
decreased demand for apartments
increased mobility of workers
a dramatic increase in rental rates
2
With which term is a command economic system MOST closely associated?
perfect competition
government regulation
absolute advantage
entrepreneurship
3
Peggy,a college grad is unable to finda job that suits her interests.What kind of unemployment?
seasonal
structural
cyclical
frictional
4
an economy characterized by increasing GDP, low unemployment, &increasing inflation.Conclusion?
The Federal Reserve should increase the money supply
This economy is in the expansion phase of the business cycle
This economy is in slowdown
The gov't needs to address the unemployment problem
5
Using this diagram, what outcome can be predicted if individuals stopped purchasing goods?
Businesses would produce less goods
Businesses would lose income
Businesses would not be able to pay for resources
Businesses would experience all of these outcomes
6
GDP (gross domestic product) is supposed to show economic health b/c it is supposed torise when
inflation is low
wealth is being created
unemployment levels are falling
prices are falling
7
In 2 years, Parthia has a steep decline in unemployment,rise in real GDP, &stabilized prices...
They are in the middle of a boom period
They are stagnating economically
They are at the start of a recession
They are in the middle of a depression
8
Rebecca had to pay a $2,000 deductible after her car accident. How can she lower her deductible
ask for a higher premium
ask for a lower premium
nothing can be done
drive more safely
9
For credit worthiness, who is likely to pay the GREATEST finance charges on the same amount?
Georgia, who sometimes pays more than the minimum amount
James, who always pays the minimum each month
Mary Lou,who always pays the full creditcard bill each month
Mark, who usually pays his credit card bill in fullif he can
10
In a year when the fed. gov't spends more money than it collects in taxes, the immediate result
is a decrease in the GDP
is a federal budget deficit
is an increase in the GDP
is a federal budget surplus
11
In the business cycle, what always follows immediately after a contraction?
trough
depression
expansion
peak
12
Which of these is MOST LIKELY to lead to inflation?
the application of price ceilings
an increase in the aggregate supply of goods/services
reduced prices for goods and services
an increase in the costs of production
13
Define aggregate demand
the demand for all goods/services within a nation
the amount available of a particular good/service
the demand for all exported goods/services
the quantity demanded of a particular good/service
14
Can a nation have a negative GDP?
No,b/c GDP measures the valueof products&that isn't negative
No, because of negative exports
Yes,b/c GDP measuresthe value of products & that is negative
Yes, because of negative exports
15
The consumer price index (CPI) is a measure of
aggregate demand
aggregate supply
gross domestic product
inflation
16
Which of these is MOST LIKELY a result of a high unemployment rate in the United States?
greater gov't expenditures for transfer payments (ie welfare
increased demand for consumer goods
increased revenues
increased production of capital goods
17
Define aggregate supply
the quantity supplied for a particular good/service
the supply for all exported goods/services
the supply for all goods/services within a nation
the supply of all imported goods/services
18
Which of the following benefits from the declining value of money during high inflation?
a person with investments
a bank that has lent money
a person who has borrowed money
a person with a savings account
19
When people use their resources so that marginal benefits exceed marginal costs, they
fail to use resources efficiently
make rational economic decisions
make irrational economic decisions
eliminate the opportunity costs of decisions
20
The BEST example of structural unemployment in an economy is someone
out of work due to a change in the business cycle
between jobs or entering the work force
out of work due to a seasonal downturn in business
whose job skills do not match the economy's needs
21
Which worker BEST illustrates the problem of structural unemployment?
a landscaper who can't find a job in the winter
a computer programmer laid off during an economic downturn
a college graduate looking for her first full-time job
a steelworker whose skills are no longer marketable
22
What industry comes close to pure competition, there are plenty of sellers to keep costs low
blue jeans
electricity
cars
wheat
23
An increase in Americans buying imported goods would result in (C+I+G+(X-M))
a decrease in GDP
no change in GDP
a severely damaged GDP
an increase in GDP

Macroeconomics Review #1 Flashcards | StudBud