Unit 5 Test Review

Your job was just replaced by a robot. That sucks. What kind of unemployment are you facing?

These are used to predict Business Cycles

Which of the following is a main cause of poverty in the United States?

How can changes in technology affect the unemployment rate?

Getting laid off from work due to the weather putting a stoppage to the work you do.

Paying for college credits to increase a workers human capital is an example of...

This occurs when Real GDP falls for at least 6 months or 2 quarters.

Percent of the labor force that is unemployed.

What does "full unemployment" mean?

Yearly income earned by Americans + American-owned firms.

What age group in the U.S. has the largest percentage of its members living in poverty?

Increasing productivity without using more resources.

Why is Real GDP more accurate than Nominal GDP?

An area where businesses can locat and not have to pay certain taxes.

When inflation is caused by too much money in the economy.

What are two major causes of technologal progress?

A general rise in prices.

Roger has a college degree, but he is working at the local gas station. What's going on here?

Repeating pattern of higher prices leading to inflation and higher wages.

The total amount of goods and services in the economy at all price levels.

When people take time to find a job after graduation, quitting a job, losing their job, etc...

Government money that is used to provide support for poor families.

Job loss due to a crappy economy.

Level below which income is too low to support a family.

Which of the following is considered a cause of inflation?

7 million unemployed. 175 million employed. What is the unemployment rate in this scenario?

What is one limitation of GDP?

GDP measured in 2015 prices

What is considered a normal unemployment rate?

Increasing capital per worker through training/education and/or adding physical capital.

Highest Point in a Business Cycle

General drop in the price leve. Signs of a stagnant economy. 

This shows the average price of a group of goods.

The average of all prices in the economy.

Income from wage earners that is not spent.