question

when households purchase goods its known as

answer

consumer spending

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households hold income in what form

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wages, dividends interst

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dispoable income is income earned by housefolds in factor markers

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minus taxes plus government transfers

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income that households have available for spending or saving

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disposable income

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transfer payments

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all of above

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which of the following does not represent an addition to US GDP

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german buys stock

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which of the following is tru

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since GPD is equal to the total value of final goods and services produced in

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in simplified circular model the two sectors are

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households and firms

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GDP is equal to

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sum of total factor income earned by households from firms

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GDP is measure of

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total spending on domestically produced final goods and service

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which of the following transactions would add to the value of the US GDP?

answer

a grocery store purchases new freezes made in US

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GDP is measure of both

answer

income and output

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bigest portion of US GDP is value added by

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business

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national income accounts were created in US during

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Great Depression

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GDP measured in current year prices is

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nominal GDP

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the rate of growth of real GDP

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depends on which year is used as base year

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real GDP per capita is

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not a sufficient measure of human welfare

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inflation rate that is reported in the news refers to

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annual percentage change in consumer price index

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which of the following price indexes tends to fluctuate most over time?

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producer price index

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price indexes measure

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fluctuations in aggregate price level

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which of the following statements is true (2)

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in united states income tax brackets are adjusted according to changes

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comparatively high unemployment rate indicates

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relatively difficult to find a job

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country's labor force is

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sum of unemployment and employment

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which of the following is not true?

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the unemployment rate is a literal measure of percentage of people who wants a job but can't find one

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to the extent that discouraged workers are present in the economy

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unemployment rate will understate the number of people who are unable to find jobs

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workers who would like to find a full time job but are currently working part time are called

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underemployed

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the unemployment rate can understate the true level of unemployment because it does not count

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discouraged workers, marginally attached and underemployed

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increases in the unemployment rate typically indicate

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periods of economic recession

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which of the following is true? (3)

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there is a generally strong negative relationship growth in economy and rate of unemployment

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unemployment associates with the time workers spend in job search

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frictional unemployment

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unemployment that results when there are more people seeking jobs in a labor market than there are jobs available at the current wage rate?

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structural unemployment

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binding minimum wage is likely to cause

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structural unemployment

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structural unemployment would not be caused by

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minimum wage set below equilibrium wage

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natural rate of unemployment arises from effects of

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frictional and structural unemployment

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natural rate of unemployment

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will rise if there is an increase in number of young workers

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actual unemployment is equal to

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natural unemployment plus cyclical unemployment

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increased costs of transactions that are caused by inflation are known as

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shoe leather costs

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increased costs that arise because inflation makes money a less reliable unit of measurement

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unit of account costs

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which of the following statements is true (4)

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borrowers gain at expense of lenders if the actual inflation rate is higher

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if lenders expect higher inflation in years to come, they will most likely

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increase the nominal rate of interest

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if a country replaced its currency with a new currency at a ratio 10 united of old currency equal to 1 unit of new currency real

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wages and real income would not change

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which of the following statements is true (1)

answer

macro-economists study variables such as overall levels of prices and output

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most economists agree that government intervention in economy is beneficial

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smoothing out short-term economic fluctuations

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which of the following is a microeconomics variable?

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price of coffee

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which of the following is a macroeconomic variable?

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overall level of output

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long run effect of macroeconomic growth is to

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allow for a higher standard of living

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widely held view that the government should take an active role in macro economy dates back to

answer

great depression

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tools of fiscal policy are

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government spending and taxation

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tools of monetary policy are

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control over interest rate and quantity of money

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microeconomics addresses how

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to use a given set of resources as efficiently as possible

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macroeconomics addresses

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how society can increase its total amount of productive resource

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most important effect of recession is its effects on the

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ability of workers to find jobs

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in recents years the united states has most frequenty experienced

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trade deficits

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the buisness cycles is the

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short run alternation between economic recessions and expansions

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which of the following statements is true?

answer

over the business cycles the economys level of output and its unemployment rate move is opposite directions

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overall output

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typically declines during recession

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modern policy makers

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try to "smooth out" the business cycle

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fiscal policy attempt to

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stabilize the economy through changes in taxation and government spending

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long run growth refers to

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growth of economy over several decades

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which of the following is true

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deflation can worsen a recession by people an incentive to hold cash rather than to make investments

question

which of the following statements is true

answer

there no simple relationship between success of economy and whether it runs trade surpluses or deficits

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