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Macro TEST 2

76. Economic growth is measured by change in:
c.) real GDP per capita
78. The official unemployment rate may not reflect the true state of unemployment because:
e.) a) and b) only.Part-time employees who want to work more hours are treated the same statistically as those who hole full-time jobs. Some individual who want to work may become discouraged and cease actively looking for work.
79. After looking for a job for more than eight months, Kyle has become frustrated and stopped looking. Economists view Kyle as:
d.) cyclically unemployed
80. The most severe unemployment experienced by the United States was experienced during the Great Depression, which occurred during the period lasting from:
81. Frictional unemployment is:
a.) unemployment that is due to normal
82. Structural unemployment includes:
b) unemployment caused by automation that displaces workers from their jobs.
83. Cyclical unemployment arises when:
a)business activitiy in the macroeconomy declines.
84. When an economy is operating at full employment:
c.) cyclical unemployment will equal zero.
85. Demand and supply may not balance in the labor market if:
d.) any of the above. Firms pay efficiency wages, the government imposes a minimum wage, unions successfully negotiate increased wages for their members.
86. Deflation exists whenever:
a.) the overall price level falls.
87. The difference between the nominal interest rate and the rate of inflation is:
b.) the real interest rate
88. A business cycle reflects change in economic activity, particularly real GDP. The stages of a business cycle in order are:
a.) expansion, peak, contraction, trough
89. The GDP deflator:
d.) is the broadest generally reported measure of inflation
90. Economists use the term "business cycle" to refer to:
c.) fluctuations in the economic activity, measured by GDP or unemployment.
91. GDP is a measure of the:
c.) market value of all final goods and services produced during a given period.
92. Final goods and services used to compute GDP refer to:
c.) goods and services purchased by the ultimate users.
93. Which of the following is an example of an intermediate good?
b.) cloth sold to a suit manufacturer
94. The difference between net income of foreigners and GDP is:
c.) GNP
95. The expenditure method of measuring GDP is calculated by adding up:
B) C+I+G+(X-M)
96. When your mother buys a pound of Swiss chocolate, it is accounted for in which expenditure category of GDP?
d.) net export
97. Which of the following is not considered a factor payment?
e.) transfer payments
98. National income:
d.) equals GDP minus depreciation.
99. Personal income:
a.) is a measure of the income earned by owners of resources used in making final goods and services.
100. If the price index in the first year was 90, in the second year was 100, and in the third year was 95:
b.) the economy experienced 10 percent inflation between the first and second years and 5 percent deflation between the second and third years.
101. Measures of well-being include:
e.) all of the above
102. Investment includes:
c.) fixed investment plus additions to business inventories
103. If real GDP decreases and population increases, then real GDP per capita:
b.) will fall
104. Which of the following is false?
d.) All goods and services exchanged in the current period are included in this year GDP.
105. If the price index is now 120, it means:
b.) prices are 20 percent higher than the base year.
106. A business entity that is owned by stockholders who face only limited liability is called a:
b.) corporation
109. A stockholder who purchases 10 shares of stock at $100 per share only to see the company shortly thereafter file for bankruptcy:
a.) can lose only the value of the initial investment, or $1,000.
111. The random walk theory suggests:
b.) that it is extremely difficult without inside information to consistently pick winners in the stock market.
114. Investment is affected by all but which of the following factors?
e.) all of the above are factors which influence investment
115. A decrease in interest rates is likely to result in:
b.) a decrease in investment spending
116. At higher real interest rates,
E) A & B People save more, People save less
118. The present value of future income is calculated using which of the following formulas?
b.) PV = $X/(1 + r)i
If export is $100, import is $150, consumption is $100 and investment is $100, govt expenditure is $100 its GDP is
c) $250
A country has a population of 125 million, labor force of 75 million, employed workers of 50 million, unemployed workers of 25 million, its unemployemnt rate is
A country has: Y (GDP) = $10,000
consumptions (C) =6,000
Taxes (T)= 1,500
GOVT EXP (G) = $1,700
Its investment function is = 3,300-100r, where is r is interest rate ITS INTEREST RATE IS:
BOTH A & B 3,300-100r=y-c-g;
A country has an economic growth rate of 7% its gdp will double in:
10 years