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Macro: Intro to Macro (Unit 2) Flashcards | StudBud
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Macro: Intro to Macro (Unit 2)
Macro: Intro to Macro (Unit 2)
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Macro Unit 2 Review
Flashcards
33 cards
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Practice quiz
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Questions
33
Answers
1
Name the type of unemployment: Lost job due to recession.
Frictional
Structural
Cyclical
2
Which of the following would likely increase net exports?
Increase in tariffs and quotas
Decrease in the value of the domestic currency relative to other currencies
Decrease in national income of trading partners
3
What is the negative multiplier effect called?
Contradiction of hoarding
Inconsistency of abstemiousness
Paradox of thrift
Incongruity of frugality
4
Which of these is NOT a sub category of consumer spending?
Construction
Durable goods
Services
Non durable goods
5
Which of these major spending components of GDP is most unstable?
Consumer spending
Net exports
Government spending
Investment spending
6
Who keeps track of unemployment and CPI in the United States?
DEA
BLS
BEA
GDP
7
Which of the following statistics measures output?
Unemployment
Inflation
GDP
8
How do most economists define full employment?
0% U-6 unemployment
0% U-5 unemployment
0% U-3 unemployment
Non-accelerating inflation rate of unemployment
9
Name the category: Construction worker who isn't working and stopped looking for work two months ago.
Labor force
Unemployed
Not potential labor force
Potential labor force
10
Buying shares of Coca-Cola stock. GDP or not GDP?
Not GDP
GDP
11
Which of these types of spending is marked by 'smoothing' adding to its stability?
Consumer spending
Investment spending
Government spending
Net exports
12
Which of the following would likely increase aggregate consumer spending?
Increase in expected income
Decrease in wealth
Increase in real interest rates
Decrease in income
13
Which level of government spending tends to be anti-cyclical?
Federal
State and local
14
Which of the following likely increases net exports?
Appreciation of domestic currency
Depreciation of domestic currency
Decrease in foreign income
More protectionist policies
15
Which of the following is NOT true about BLS definitions?
PTER would like to work more than 35 hours / week
'marginally attached' want a job and looked with a year but not a month
all people who aren't working are unemployed
Labor force = employed and unemployed
16
What is another name for aggregate demand?
Total spending (power)
Total productive capacity
Total orders
17
What is the primary determinant of consumer spending?
Borrowing
Real Interest Rates
Income
Wealth
18
Which of these increase investment demand?
Slow down in technological change
Increase in capacity utilization rate
Increase in unplanned inventory
Increase in operating costs
19
Which of the following types of goods does core inflation exclude because of its volatility?
Energy goods and services
Banking services
Entertainment services
Clothing goods
20
Which of these is NOT a categorical cause of recessions?
Financial
Political
Natural
Stochastic
21
Which of these is the
best
indicator of economic growth?
Real GDP per capita
Nominal GDP
Real GDP
Unemployment
22
Growing vegetables for sale at the local farmer's market as part of your family business. GDP or not GDP?
Not GDP
GDP
23
Which of these groups is in the labor force?
Children
Part time workers for economic reasons
Marginally attached workers
Retirees
24
Vacuuming your floors. GDP or Not GDP?
GDP
Not GDP
25
Name the cause of inflation: monopolizing industries increasing the size of their price mark-ups.
Demand pull
Market power
Asset market boom
Cost push
26
What happens to MPC as we earn higher incomes?
Tends to increase
Tends to decline
Stays roughly the same
27
Which of these is NOT an accurate definition of inflation?
Increase in the money supply
Decrease in purchasing power of dollar
Each dollar buys fewer goods and services
Increase in the price level
28
Which of the following increases labor productivity?
Increase in average hours worked per worker
Increase in quantity of capital goods
Increase in number of laborers
Reduction in economies of scale
29
Which of the following is NOT a positive feedback loop economists worry could lead to hyperinflation?
Runaway expectations
Wage-price spiral
Recession-unemployment spiral
Debt deflation
30
Name the cause of inflation: Too much spending relative to productive capacity.
Market Power
Cost Push
Asset Market bubble
Demand pull
31
Which of the following pro-growth arguments does NOT have a counter argument?
Increase total spending
Social investment in education and infrastructure
Stable political and societal order
Pro-market institutions such as private property and freedom of enterprise
32
Which of these cause net exports to increase?
Decrease in national income abroad
Depreciation of the dollar
Appreciation of the dollar
33
Which of the following statistics is NOT one of the big 3 macroeconomic indicators?
Employment
Inflation
Output
Net Exports
