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AP Macro Unit 2 Review Flashcards | StudBud
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AP Macro Unit 2 Review
AP Macro Unit 2 Review
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A #Macroeconomics review for Unit 2 in #APMACROECONOMICS.
Flashcards
28 cards
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Practice quiz
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Questions
28
Answers
1
Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?
Trough
Peak
Expansion
Contraction
2
The % increase in purchasing power that a borrower pays (adjusted for inflation)
Real Interest Rates
Inflation Rate
Unemployment Rate
Nominal Interest Rates
3
How to measure CPI?
C+I+G+Xn
[Market Basket / Base Market Basket] X 100
(Deflator) X (Real GDP) / 100
[Year 2-Year 1 / Year 1] X 100
4
What is INCLUDED in GDP?
Consumer, Investment, and Government Spending, Net Exports
House made 10 years ago
Used items
Stocks, Drug Dealing
5
How to measure GDP deflator?
IDK
[Market Basket / Base Market Basket] X 100
[Nominal GDP / Real GDP] X 100
[Year 2-Year 1 / Year 1] X 100
6
What is NOT included in GDP?
Inflation
Intermediate goods, bonds, illegal/nonmarket, and used
Consumer, Investment, Government, and Net Exports
Consumer Investment
7
What is Real GDP?
GDP that isn't fake. they keep it 100
GDP that counts inflation
GDP that includes market baskets
GDP that expresses all goods and services
8
What is the unemployment rate?
Someone who has given up on finding a job
People who got fired
% of people in labor force who want a job but don't have one
People who don't have a job, including kids
9
What is Unemployment?
Workers actively looking for a job but don't have one
People not in labor force
Laid-off
You got fired
10
The most commonly used measurement of inflation for consumers is...
CPI
GDP
Price Indices
Market Basket
11
Which term describes the phases of expansion and contraction in an economy over time?
Trough
Inflation
Business Cycle
Recession
12
How to measure Nominal Interest Rates?
Nominal interest rate + expected inflation
Nominal interest rate - expected inflation
Real Interest Rate - Expected inflation
Real Interest Rate + Expected Inflation
13
If GDP falls for at least 6 months it is...
Expansion
Recession
Structural
Inflation
14
The decrease in general prices of inflation rate?
Disinflation
Inflation
Deflation
Unemployment
15
How to calculate GDP?
Deflator X Real GDP/100
Price of market basket/Price of base market basket X 100
C+I+G+Xn
year 2-year 1/year 1 x100
16
How to measure Nominal GDP?
[Deflator X Real GDP] /100
[Year 2-Year 1] / Year 1 X 100
C+I+G+Xn
[Market Basket/Base Market Basket] X 100
17
How to measure Real Interst Rates?
Nominal Interest Rate+Real Interest RAte
Real Interest Rate-Nominal Interest Rate
Real Interest Rate+Expected Inflation
Nominal Interest Rate-Expected Inflation
18
The phase of a business cycle in which real GDP reaches the lowest level is the...
Trough
Expansion
Contraction
Peak
19
How to measure growth year to year?
[Nominal GDP / Real GDP] x 100
[Market Basket/ Base Market Basket] x 100
[Year 2-Year 1 / Year 1] X 100
(Deflator) x (Real GDP) / 100
20
What are the three major economic goals?
Only focus on Economic Growth
Focus on Education
Economic Growth, Limit Unemployment & Inflation
GDP, Deflation, Promote Economic Growth
21
What is Real Wage?
Wage that is paid in cash
Wage that is adjusted for inflation
Wage that is measured by money rather than purchasing power
Wage that is limited
22
Rising of the general level of prices which reduces "purchasing power" of money is?
Disinflation
Inflation
Deflation
GDP
23
TRUE OR FALSE: High productivity is an indicator of economic growth
True
False
24
What is GDP?
Includes all goods and services like drug dealing and stocks
Increase in general prices
Measurement of Inflation
Dollar value of all final goods and services in one year
25
Three MAIN types of Unemployment?
Structural, Seasonal, Technological
Frictional, Structural, Cyclical Unemployment
Seasonal, Technological, Demand-Deficient
Frictional, Seasonal, Cyclical
26
Measured in current prices but does not account for inflation year to year
GDP deflator
CPI
Real GDP
Nominal GDP
27
The percent changed in prices from year to year?
Market Basket
Deflation
Inflation Rate
Unemployment Rate
28
Income Approach is...
Dollar value of all final goods and services
Rising of general incomes
% changed in prices
All income earned from producing goods and services
