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Economics - Unit 4 - Macro Basics Flashcards | StudBud
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Economics - Unit 4 - Macro Basics
Economics - Unit 4 - Macro Basics
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1
What is one consequence of high inflation?
Purchasing power decreases
Consumer demand rises
Purchasing power increases
Consumer confidence rises
2
Which of following persons would count in the labor force?
Mary, a part-time barista
Nash, a 70 year old retiree
Anabelle, who is in prison
Lawrence, a stay-at-home dad
3
What part of the business cycle sees rising inflation and lower unemployment?
Trough
Contraction
Peak
Expansion
4
When figuring the "G" component of the GDP formula, which of the following counts?
Government issues a Social Security check
Government purchases a tank
Gary purchases a burrito
Government issues a stimulus payment
5
When calculating GDP, which of the following is NOT included as "investment spending"?
Marge buys 50 new shares of Nike stock
Tony buys a new oven for his pizzeria
Subway opens 30 new franchises in Georgia
Ford automobiles opens a new factory
6
Which of the following persons would BENEFIT from high inflation?
Melissa, who lives off the interest from her bank account
Kelly, who owes money on multiple loans
Joel, a retiree on a fixed income
Larry, who does not have a COLA attached to his annuity receipts
7
GDP is...
a measurement of output and production
calculated in dollars ($$$)
measured in increments of one fiscal year
all of the given choices are correct
8
When calculating the unemployment rate, who counts in the "labor force"?
Everyone in the population
Everyone in the population, minus the very young and very old
Everyone working plus all offically recognized unemployed
Everyone who has a job
9
In the GDP formula, what does (X-M) stand for?
Exit cash minus M1 currency (Net loss)
Extra spending minus Military spending
Xmas spending minus Memorial Day spending
Exports minus Imports (Net Exports)
10
The CPI calculation is a measure of...
Foreign Trade
Unemployment
Inflation
Output
11
When calculating GDP, which of the following counts as "consumer spending"?
Monique buys bulk sugar for her bakery
Kara pays the stylist who put highlights in her hair
James buys a used Honda Civic which was made in 2019
Raphael deposits money in a new bank account
12
The cost of market basket in Y2 is $200. The cost of same market basket in Y1 is $100. Calculate CPI.
200
100
120
160
13
What part of the business cycle sees rising unemployment coupled with lowering consumer confidence?
Peak
Expansion
Contraction
Trough
14
What part of the business cycle seeing both rising consumer confidence and rising consumer spending?
Trough
Expansion
Peak
Contraction
15
In the given formula, what does the "I" stand for?
International Trade
Inflation
I-pods
Investment Spending
16
Overall, the business cycle shows ___________ over long periods of time but ___________ over short periods of time.
growth; risk
decline; risk
decline; stability
growth; stability
17
Which of the following persons would NOT count in the labor force?
Jenny, a marine biologist who was just hired
Gene, a circus acrobat who was just fired
Lester, who was recently laid off and returned to school full-time
Mary Beth, who works 3 separate part-time jobs
18
If the # of unemployed is 20 and the total # in the labor force is 200, calculate the unemployment rate.
5%
15%
10%
20%
