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Macro Econ Exam 2 Flashcards | StudBud
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Macro Econ Exam 2
Macro Econ Exam 2
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Macroeconomics exam 2 review. Chapters 7-10
Flashcards
25 cards
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Practice quiz
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Questions
25
Answers
1
Jen gets a nominal raise of 2%, but the real raise only comes out to 0.5%. This is...
Menu Cost
Shoe- Leather Cost
Money Illusion
Price Confusion
2
Which of the following is NOT a financial tool?
Bonds
CPI
Treasury security
Stocks
3
A small business owner takes a loan out from the bank. This is...
Direct finance
Indirect finance
4
Inflation rate is the percent increase in the CPI from one year to the next
True
False
5
Ownership shares in a firm is a...
Bond
Stock
6
The natural rate of unemployment is...
Cyclical + Frictional
All three
Structural + Frictional
Structural + Cyclical
7
High investor confidence...
Doesn't affect demand
Increases demand
Decreases demand
8
Which factor does NOT shift the
demand
of loanable funds?
Change in interest rate
Investor confidence
Productivity of capitol
9
___ is the measure of the price level based on consumption.
Simple Price Index
CPI
Basket Price
Inflation Rate
10
Which is NOT a problem with inflation?
Money Illusion
Menu Cost
Price Confusion
Substitution Bias
11
Which is included in the labor force?
Retirees
Full-time students
Unemployed
Homemakers
12
Why has the labor force participation rate fallen in recent years?
Young workers are unmotivated to find jobs
A large portion of the labor force is moving into retirement age
The overall population has been declining
The amount of available jobs is declining
13
What is the supply in the loanable funds market?
Savings
Interest Rate
14
A lower productivity of capitol...
Increases demand
Decreases demand
Increases supply
Decreases supply
15
A higher time preference means we are more likely to save.
True
False
16
Change in interest rate causes movement along the supply
and
demand curve.
True
False
17
Discouraged workers are counted in the labor force?
False
True
18
Mary is taking time to find her dream career after graduation. This is...
Cyclical Unemployment
I don't know
Structural Unemployment
Frictional Unemployment
19
Underemployed workers are counted in the labor force?
False
True
20
According to consumption smoothing, which is true?
Borrowing/ saving doesn't change throughout life
In midlife, we borrow
In later life, we dissave
In early life, we save
21
Which factor does NOT shift the
supply
of loanable funds?
Change in interest rate
Consumption smoothing
Changes in time preference
Change in income/wealth
22
Labor force includes both the employed and the unemployed.
True
False
23
The market equilibrium in the loanable funds market is where savings = investments
True
False
24
A security that represents a debt to be paid, like an IOU, is a...
Bond
Stock
25
Who are the demanders in the loanable funds market?
Borrowers
Savers
