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Unit 4 (FCHS)
Unit 4 (FCHS)
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StudBud Administration
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Macroeconomics
Flashcards
27 cards
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Practice quiz
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Questions
27
Answers
1
Economists like to convert statistical series to real terms (i.e. real GDP) b/c the adjustment
is easy to do.
removes the problem of unemployment.
removes the distortions caused by inflation.
makes the statistical series seem to grow faster.
2
A person who cleans their own house takes part in
nonmarket transaction
the underground economy
stimulating GDP
reducing GDP
3
When calculating GDP, the purchase of a new business office is counted as
goverment
net export
consumption
investment
4
During periods of unexpected inflation, people who previously borrowed:
lose to lenders, who become more eager to make loans.
should repay loans as quickly as possible.
lose-they repay loans after higher prices erode real income.
gain because they repay loans with cheaper dollars.
5
When Coca-Cola buys a shipment their secret ingredient it is considered to be
a nonmarket transaction.
an intermediate product.
a final sale.
a secondhand item.
6
Which component of GDP can be a negative number?
net exports
investment spending
consumer spending
net migration
7
Inflation that occurs because the price of essential raw materials or wages has incr. is called
price drop inflation
demand-pull inflation
cost-push inflation
deflation
8
C + I + G + (X-M) - which letter represents the largest sector of the macroeconomy
G
C
I
X
9
All of the following are effects of the federal debt EXCEPT
purchasing power is transferred.
incentives to work, save, and invest are decreased.
interest rates are lowered.
income distribution is altered.
10
A business fires 75% of their employees in '08 b/c of recession. Employees are ___ unemployed.
Structurally (structural)
Frictionally (frictional)
Not Counted as Unemployed
Cyclically (cyclical)
11
Index of avg level of prices for approx. 90,000 goods and services in the economy is the ___
consumer price index.
producer price index.
implicit GDP price deflator.
current GDP.
12
Retail profits fell leading to the termination of a part-time cashier. Cashier is _ unemployed.
Cyclically (cyclical)
Frictionally (frictional)
Not Counted as Unemployed
Structurally (structural)
13
Choose the correct letter on the graph that represents a recession.
W
Z
X
Y
14
GDP expressed in constant—or unadjusted for inflation—prices could also be referred to as
Real GDP
Nominal GDP
Aggregate Supply
Aggregate Demand
15
Toll-booth cashier becomes unemployed when a machine does his job better. He is ___ unemployed.
Structurally (structural)
Cyclically (cyclical)
Not Counted as Unemployed
Frictionally (frictional)
16
Which phase of the business cycle would the economy experience its lowest rate of unemployment?
recession
depression
peak
trough
17
There are always workers who are in the process of changing jobs, so there is always some ____
frictional unemployment
structural unemployment
cyclical unemployment
technological unemployment
18
The market value of all final goods & services produced in a country in a given period of time.
Gross Dollar Prices
Gross National Product
Gross Domestic Product
Gross Production Ratio
19
Which of the following would be counted in this year's GDP?
buying stocks
fixing my own car
the sale of a new house
the purchase of a used car
20
To be counted in the civilian labor force, a person must be
already employed and between the ages of 16 and 65.
male and more than 18 years old.
female and a member of the military
employed or looking for work, and age 16 and over.
21
You graduated from COLLEGE and are currently looking for your 1st job. You are ___ unemployed.
Frictionally (frictional)
Structurally (structural)
Not Counted as Unemployed
Cyclically (cyclical)
22
If intermediate goods and services were included in GDP:
GDP would be understated.
GDP would be overstated.
GDP would have to be deflated for changes in price level.
nominal GDP would exceed real GDP.
23
A government budget deficit occurs when:
gov't collects more in revenues than it spends
gov't spends more than it will collect in revenues
The Federal Reserve lends more than it borrows.
The Federal Reserve borrows more than it lends.
24
An effect of inflation
consumers, bus. & govts buy more goods than can produce
cost of a raw material, such as oil, unexpectedly increases
people speculate heavily to take advantage of rising prices
people on fixed incomes have decreased purchasing power
25
The total amount of money borrowed over time by the government.
Federal budget
Balanced budget amendment
Budget deficit
National debt
26
GNP does not include…..
Foreign goods made in the US
US products sold in another country
US products made in the US
27
Employment figures understate the extent of unemployment because they include
homemakers without income.
part-time jobs at minimum wage.
retirees on pensions.
students in secondary schools.
