Macro Quiz Review - Micah Dewey | Biblioteka

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Goals of Macroeconomics

Economic Growth, Keep Unemployment Low, Keep Inflation Low

Establish Allies, Increase Trade, Distribute Money

Amass Wealth, Grow Cities, Generate New Industries

Strike Fear In Nations, Dominate Global Markets, Crush Enemies

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What type of unemployment occurs when changes in the market condition push out workers from certain occupations?

Cyclical unemployment

Seasonal unemployment

Frictional unemployment

Structural unemployment

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What is it called when a worker is unemployed due to their search for better job opportunities?

Frictional unemployment

Cyclical unemployment

Seasonal unemployment

Structural unemployment

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What type of unemployment results from the business cycle and economic downturn?

Seasonal unemployment

Structural unemployment

Frictional unemployment

Cyclical unemployment

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If a ski instructor is unable to find work during the summer, they are experiencing what type of unemployment?

Frictional unemployment

Seasonal unemployment

Cyclical unemployment

Structural unemployment

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What is Gross Domestic Product (GDP)?

The total value of goods a country consumes

The total value of imports and exports

The total value of goods and services a country produces

The total household income in a country

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What are the four main components of GDP?

Consumption, Investment, Government Spending, Net Exports

Wages, Rent, Interest, Profit

Imports, Exports, Consumption, Savings

Income, Consumption, Population, Wealth

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Which component of GDP would a new factory construction fall under?

Government Spending

Consumption

Investment

Net Exports

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Why is it important to measure GDP?

To measure the wealth of individuals

To calculate trade deficits

To understand the size and growth of an economy

To predict stock market trends

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What is meant by the term 'labor force'?

The total number of people working

The total population of a country

The total number of people eligible to work

The total number of people unemployed

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What is frictional unemployment?

Unemployment due to people switching jobs or searching for jobs

Unemployment due to economic downturn

Unemployment caused by lack of necessary skills

Joblessness due to a declining industry

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What groups are excluded from the labor force?

Only the unemployed

Retirees, students, non-citizens, underage, institutionalized people

Workers under 18

Those not currently seeking work

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What is the difference between the unemployment rate and labor force participation rate?

One measures joblessness, the other measures work-eligible population

Unemployment rate shows percentage of population working

They measure the same thing

Labor force participation counts unemployed

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What category of GDP would a car manufactured in the U.S. fall under?

Net Exports

Investments

Government Purchases

Consumer Spending

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Which of the following is categorized as 'Government Spending' in GDP?

Car manufacturing

Purchase of imported goods

Building of public schools

House construction

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What is included in the 'Consumer Spending' category of GDP?

Building roads

Export of goods

Grocery shopping

Government bonds

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Which of the following is not a component of GDP?

Government Purchases

Import of goods

Consumer Spending

Investments