U7 Macro CSA #1 - Denise Rogers | Library

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1

You were released from you job as a pizza chef because a new pizza robot was just installed in the pizza restaurant. What type of unemployment is this?

natural

frictional

structural

cyclical

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What is considered the natural rate of unemployment in the U.S.?

the unemployment rate when it hits 8 percent unemployment.

the rate of unemployment that would occur in the absence of cyclical fluctuations. (4-5%)

the cyclical rate of unemployment added to frictional and structural unemployment (above 6%)

 the rate of unemployment when everyone that can be employed is employed. (below 4%)

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The percentage of people in the labor force who want a job but are currently not working makes up the

Nominal GDP

Unemployment rate

Real GDP per capita

Inflation rate

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A mechanic that leaves/quits his job working on cars and is currently looking for a job working on planes is considered

Frictionally unemployed	

Not in the Labor Force

Cyclically unemployed

Structurally unemployed

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George can’t find a job since the economy is in a depression. What type of unemployment is he experiencing?

Frictional unemployment

Cyclical unemployment

Structural unemployment

Seasonal unemployment

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What are the 4 components of GDP?

Demand, Investment, Government Spending, Net Exports

Consumption, Supply, Exports, Imports

Consumption, Investment, Government Spending, Net Exports

Consumption, Demand, Supply, Net Exports

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Gross Domestic Product is a measure of

The price level of goods and services sold plus the income of workers.

The quantity of goods and services produced by private business in one year.

The total spending of federal, state and local governments plus the difference in value of items traded.

The total dollar value of all new goods and services produced in a country in one year.

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GDP measures the__________ of a given country

debt

finances

credit

services

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GDP can be used to:

compare the sum of two years / compare policy changes / compare one country to another

compare one year to another / compare policy changes / compare one country to another

compare one year to another / compare population changes / compare one country to another

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Max buys a new computer for his video production business. This transaction would be included in what component of GDP?

Government Spending

Consumption

Net Exports

Investment

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An economist is presented with information about the prices of a selection of goods over several years (market basket). This information would be MOST useful for which purpose?

Deciding whether or not to buy bonds on the open market

Calculating Gross Domestic Product

For calculating Unemployment

to compile a Consumer Price Index to measure inflation

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Which of the following will most likely BENEFIT/BE HELPED from unanticipated inflation?

Hurley, a farmer, buys machinery with a fixed-rate loan to be repaid over seven years

The elderly living on a fixed income

Jacob buys a new home with an adjustable-rate mortgage

Bella repaying a variable rate car loan

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Who is HURT when unanticipated inflation occurs?

Sean who is paying a fixed rate car loan

Renters living in a rent controlled apartment 

Jessica borrows money for college from her parents and will pay it back interest free after she graduates

Charlie parents put saving for his college into a basic savings account (0.25% interest)

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Which of the following is true regarding inflation?

When inflation increases, nominal interest rates decrease

Inflation decreases the purchasing power of a country's currency

Inflation causes unemployment

Unanticipated inflation benefits lenders

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Demand-Pull inflation is most likely to occur when

There is an increase in productivity

There is a substantial increase in the price of key resources

The government pays debt by printing money

There is an increase in consumer spending

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Label the various sections of the business cycle