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Econ Unit 5

STUDY
PLAY
According to the demand pull theory, what is responsible for inflation?
demand for goods and services exceeds existing supply
An accurate statement about the Great Depression would be that
it ended largely because of an increase in defense spending related to WWII
The main economic variables that affect business cycles include all of the following EXCEPT
personal savings levels
That calculation of GDP would include
the income of a high school English teacher
According to the cost-push theory, what is responsible for inflation?
Producers raise prices to meet increased costs
The amount of moneya person has left of his or her income after taxes is called
disposable personal income
What is workfare?
A early poverty program started in the 1950s
The lowest point in an economic contraction is called
a trough
What is the difference between seasonal unemployment and structural unemployment?
seasonal unemployment occurs because of schedules; wheras structural occurs because people lack skills
An example of a nondurable good is
a paperback book
Compared with the expenditure approach to calculating GDP, the income approach is
more accurate
What does it mean when a person is underemployed?
The person has a job they are overqualified for
All of the following actions promote capital deepining except
spending a larger portion of one's disposable income
How has the distribution of income in the US changed over the last 20 years?
It has become less equal
GDP is expressed in constant, or unchanging, prices called
real GDP
How does the Bureau of Labor Statistics determine how the market basket should change over time?
by conducting a Consumer Expenditure Report
An example of a durable good would be
a used car
The main economic variables that affect business cycles include all of the following EXCEPT
personal savings levels
All of the following measures help promote technological progress EXCEPT
increased wages for researchers
Products that would be used in calculating GDP include
cars manufactured in Tennessee at a factory owned by a Japanese automobile company
Which of the following is a result of unemployment that is very low
companies have difficulties recruiting new workers
An example of capital deepening would be
paying for an employee to take college classes
When the economy is working properly, what is the unemployment rate?
4-6%
The agency that maintains the National Income and Product Accounts is
the US department of commerce
GNP minus the cost of depreciation of capital equipment is
net national product
What is a major problem for businesses during a period of chronic inflation?
they cannot anticipate their costs