MAcro 2 – Flashcards
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Which of the following headlines would be related to what macro economists study
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Real GDP grows by 2.3% in the second quarter
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During a business cycle expansion, total production _______ and total employment ________
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increases,increases
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GDP
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the total market value of final goods and sevices produced in the economy during a period of time
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Directly counted in GDP
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a 12 inch Subway sandwich purchased by a student
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Represents the purchase of a final good
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Your father buys a new John Deere riding lawn mower
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Which of the following is not directly counted in GDP
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intermediate goods
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In the circular flow model, the value of total production for an economy ________ final goods and services.
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equals
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Which of the following is not an example of a transfer payment?
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health insurance payments to an army private
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The factors of production include
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Capital
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Investment, as defined by economists, would include the purchase of a
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computer by an accounting firm
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Investment, as defined by economists, would not include which of the following?
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buys U.S. government bonds
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The purchase by a Chinese household of a CD produced in the united states is included in U.S.
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Net exports
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would be included in the official calculation of GDP
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you buy a new ipod
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A transfer payment is a payment by the government to an individual
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for which the government does not receive a good or service in return
Ex- Welfare payment
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In the curcular flow diagram, ______ supply the factors of production, and ______ goods and services
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households, buy
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Which of the following equations correctly measures GDP in an economy?
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GDP=C+I+G+NX
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GDP understates the total production of final goods and services because of the omission of
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the underground economy
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Bob stops working for Mary to care for the children
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GDP will decrease
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Nominal GDP is GDP in a given year
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valued in the prices of that year
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If the quantity of goods and services produced in the economy decreases
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it may be possible for nominal GDP to increase
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GDP
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The total market value of final goods and services produced in the economy during a period of time
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The best measure of the standard of living is
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real GDP per capita
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Discouraged workers are classified by the BLS as
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not in the labor force
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A worker experiencing cyclical unemployment?
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A freightliner employee that got laid off because of the recession of 2007-2009
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Frictional unemployment
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A worker quits his job at the post office to find more interesting work
