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Macro Part 1 Review Flashcards | StudBud
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Macro Part 1 Review
Macro Part 1 Review
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macro
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Questions
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Answers
1
Which of the following situations could cause aggregate demand curve AD to shift to AD2?
an increase in individual income taxes
a decrease in government spending
an increase in consumer spending
a decrease in the corporate tax rate
2
Changes in technology and changes in products becoming unpopular or outdated can cause
seasonal unemployment.
frictional unemployment.
cyclical unemployment.
structural unemployment.
3
Decreases in aggregate supply can be caused by
lower taxes.
reduced government regulation.
decreases in fuel and transportation costs.
decreasing business subsidies.
4
________ products are not counted in GDP because they are used to make other final products
secondary
used
primary
intermediate
5
In the diagram below, what belongs in space number 2
peak
expansion
recession
contraction
6
In the diagram below, what belongs in space number 3
expansion
trough
contraction
peak
7
A business man buys a used truck. Is this included in GDP?
yes
no
8
A person just graduated from school and is looking for a job.
seasonal unemployment
frictional unemployment
cyclical unemployment
structural unemployment
9
If contraction occurs for at least 6 months, we call it a ____
disaster
recession
political outrage
depression
10
If the aggregate demand curve moves to the right, which of the following happens?
Increase in price levels and Decrease in GDP
Decrease in price levels and Increase in GDP
Increase in price levels and Increase in GDP
Decrease in price levels and Decrease in GDP
11
index that reports on price changes for thousands of goods and services
GBI
FDA
CPI
PPI
12
Which of the following counts toward the unemployment rate?
stay at home mom
someone who has applied for work
part time worker
someone who quit looking for a job
13
Combination of high inflation and high unemployment
stagflation
contraction
depression
recession
14
Increase government spending due to war results in what type of inflation?
demand-pull
cost-push
15
Which of the following is helped by inflation?
Government that charges a flat rate for fees
Retirees living off a fixed pension
Employee on a salary
Family that has a fixed-rate mortgage
16
In the diagram below, what belongs in space number 4
contraction
expansion
recession
peak
17
Cyclical unemployment begins during what part of the business cycle?
trough
peak
contraction
expansion
18
The recovery phase of business cycle, marked by increases in GDP, Employment, and prices.
contraction
trough
expansion
peak
19
A person buys stock in IBM. Is this included in GDP?
no
yes
20
The best measure to determine standard of living is
real GDP per capita
inflation rate
real GDP
GDP
21
Which of the following events could cause aggregate supply curve AS0 to shift to AS1?
an increase in the price for foreign oil
a decrease in the corporate tax rate
a decrease in the price level
an increase in interest rates
22
Which of the following events could cause aggregate supply curve AS1 to shift to AS0?
higher interest rates
lower minimum wage
higher labor productivity
lower corporate taxes
23
the dollar amount of final goods and services produced within a country's borders
GNP
GDP
CPI
PPI
24
GDP per capita means that GDP is calculated by dividing Real GDP by
taxes
population
deflation
inflation
25
An extended recession with high unemployment
recovery
contraction
expansion
depression
26
An increase in the cost of oil would result in what type of inflation?
demand-pull
cost-push
27
Value of GDP measured in current dollars--
concurrent
nominal
contracted
real
28
Farm workers have steady jobs from March through October - other months, they are unemployed.
frictional unemployment.
cyclical unemployment.
structural unemployment.
seasonal unemployment.
29
replacing human labor with machines is an example of ____ unemployment
structural
cyclical
seasonal
frictional
30
The Government spends billions of dollars on new weapons. Is this included in GDP?
yes
no
31
unemployment directly related to the swings in the business cycle is ______
seasonal
structural
frictional
cyclical
32
If productivity increases for the fifth straight year, which of the following happens?
Increase in price levels and Increase in GDP
Decrease in price levels and Increase in GDP
Decrease in price levels and Decrease in GDP
Increase in price levels and Decrease in GDP
33
Many times a structurally unemployed person gives up looking for a job and becomes a:
cyclically unemployed worker
discouraged worker
frictional worker
naturally unemployed worker
34
Inflation is usually higher during what part of the Business Cycle?
Expansion/Peak
Contraction/Trough
35
People on a _____ income are hurt the most by inflation
hourly
low
fixed
high
36
"Real" GDP means the number has been adjusted for
deflation
inflation
taxes
population
37
A business purchasing new equipment would count towards which component of GDP?
government
foreign
investment
consumer
38
Aggregate demand will increase
when productivity is low.
if consumers save more and spend less.
if consumers save less and spend more.
if the dollar declines in value.
39
In the formula C+I+G+Nx, what does the "Nx" represent?
exports
imports
exports - imports
free enterprise
40
Unemployment is higher during what part of the Business Cycle?
Contraction/Trough
Expansion/Peak
41
All of the following are included in GDP EXCEPT
the production of a new car
the income from a garage sale
the value of a new house
the government purchasing books for a library
42
What is the term for the lowest possible level of unemployment?
perfect employment
cyclical unemployment
full employment
peak employment
43
What type of unemployment does the cartoon depict?
seasonal
cyclical
frictional
technological
44
In the diagram below, what belongs in space number 1
peak
recession
expansion
contraction
