What is the primary difference between seasonal unemployment and structural unemployment?

Seasonal unemployment occurs because of temporary demand

Read the following news clipping and select the resulting economic effect:

Aggregate demand will decrease, raising the CPI + lower GDP

When should the Federal Reserve sell government securities and raise interest rates?

When the inflation rate is too high

Which of the following might cause the inflation rate to spike up sharply?

Prices in world oil markets rise due to war in Middle East.

Which scenario best illustrates the problem of cyclical unemployment?

A sales rep who was laid off during an economic downturn

What is the relationship between personal level of education and future earnings potential?

High levels of Education = high earnings potential

A nation’s imports for one year are worth $8.2 billion and its exports equal $8.3 billion:

A trade surplus, or a positive trade balance (X+M)

Which of the following is not a duty and responsibility of the Federal Reserve?

To monitor that a local bank branch does not exceed 10% cash

Which of the following is most likely to be affected by high inflation?

A retired grandmother on a fixed income

On the graph below, what variable is represented by the gray line?

An upward trend in prosperity over time.

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Macroeconomics Short Version

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A review for our class. Macroeconomics concepts.

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Questions 15

Answers

1
Which policy could the government try if America was trying to get the economy to expand?
cut government spending
cut taxes
cut prices of consumer goods
cut production of consumer goods
2
What is the primary difference between seasonal unemployment and structural unemployment?
Seasonal unemployment is rare in a modern society
Seasonal unemployment is generally among low-paid workers
Structural unemployment can occur all year round
Seasonal unemployment occurs because of temporary demand
3
Compute the following per capita equation:
$40,000
$4.00
$4,400
$4,000
4
Read the following news clipping and select the resulting economic effect:
Both aggregate demand and aggregate supply will decrease
Aggregate demand will increase, lowering both real GDP + CPI
No change in aggregate demand and aggregate supply
Aggregate demand will decrease, raising the CPI + lower GDP
5
When should the Federal Reserve sell government securities and raise interest rates?
When aggregate supply is too high
In a depression
In a recession
When the inflation rate is too high
6
Which of the following might cause the inflation rate to spike up sharply?
Moderate temperatures result in good harvests of soybeans.
Consumer purchasing power decreases due to sluggish economy.
Price of items in the CPI “market basket” lower severely.
Prices in world oil markets rise due to war in Middle East.
7
Which scenario best illustrates the problem of cyclical unemployment?
A factory worker whose skills are no longer marketable
A sales rep who was laid off during an economic downturn
A college graduate who turns down one job and takes another
A landscaper who can’t find a job in the winter
8
What is the relationship between personal level of education and future earnings potential?
Education is totally unimportant
The majority of the “working poor” are highly-educated
High levels of Education = high earnings potential
Education has only a small influence
9
A nation’s imports for one year are worth $8.2 billion and its exports equal $8.3 billion:
A trade surplus, or a positive trade balance (X+M)
A trade deficit, or negative tradebalance (X-M)
A negative balance of payments
A positive balance of payments
10
In Macroeconomics, what do we call the lowest point of the Business Cycle?
a depression
the peak
an inflation
a trough
11
Which of the following is not a duty and responsibility of the Federal Reserve?
To monitor that a local bank branch does not exceed 10% cash
To periodically visit and inspect local banks
To make sure that money is in good condition
To make sure that all banks play by a clear set of rules
12
Which of the following is most likely to be affected by high inflation?
A doctor with a suburban practice
A factory worker
A retired grandmother on a fixed income
A shopkeeper
13
Which situation exists when tax revenues exceed government expenditures?
The Treasury prints more money
The government sells Treasury Bills
A budget surplus
A budget deficit
14
Nation imports more than it exports. Economists say that the nation has which of the following?
A trade surplus
A balance of trade
A trade deficit
A national debt
15
On the graph below, what variable is represented by the gray line?
The role of the Fed.
The lifeline
Government control and price stability.
An upward trend in prosperity over time.

Macroeconomics Short Version Flashcards | StudBud