unemployed workers as a percentage of the labor force.
Kathryn chooses to go to college full-time rather than to work. Kathryn:
is not part of the workforce.
Inflation exists whenever:
the overall price level is rising
If the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is
The official unemployment rate may not reflect the true state of unemployment because:
Part-time employees who want to work more hours are treated the same statistically as those who hold full-time jobs.
Some individuals who want to work may become discouraged and cease actively looking for work.
Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits. As a result, he is still checking the want ads and reporting to the unemployment office on a weekly basis. He is considered to be:
Structural unemployment occurs when:
automation reduces the need for welders in Detroit
When unemployment rises above the natural rate it reflects the existence of _______ unemployment.
If a minimum wage law is passed imposing a price floor above the equilibrium price of unskilled labor:
the quantity of unskilled labor supplied will exceed the quantity of unskilled labor demanded.
Why are creditors harmed by unexpected inflation?
Creditors are paid back money with less spending power than they expected when the money was loaned out.
IF the nominal interest rate is 6% and the inflation rate is 3%, the real interest rate is
Which of the following would not be counted as a final good for inclusion in GDP?
Residental construction is generally included in which category of GDP
If real GDP decresed by 1% and nominal GDP increaded by 2%, then output:
decreased and the price level increased
If nominal GDP increased from $4,500 billion in 2010 to $5,000 billion in 2011 and the GDP deflator increased from 100 to 105 over the same time period what would the 2011 real GDP equal expressed in terms of 2010 dollars?
An increase in the stock capital:
causes an economy's production possibilities curve to shift outward over time
A country will roughly double its GDP in 20 years if its annual growth rate is
Which of the following factors contribute to economic growth?
As more capital per worker is added, a per worker production function generally becomes:
flatter because capital is subject to diminishing marginal returns
In the 1700s, Reverent Thomas Malthus predicted that:
per capita economic growth would eventually become negative since population growth would tend to outstrip production
the value of all final goods and services produced domestically within a given period of time.
The formula from the expenditure method indicated that GDP is equal to:
Which of the following is an example of an intermediate good?
Residential construction is generally included in which category of GDP?
Why has nominal GDP increased historically more rapidly than real GDP in th eUnited States?
because of inflation
Problems with measuring Unemployment rate
Discouraged workers, Part timers, Underground Economy
Reasons for Unemployment (factors that increase the Unemployment)
Problems with the CPI (Consumer Price Index)
overestimates true price level about 0.5% per year
value of all final goods and services produced domestically (in one year)
GDP= income received by the factors of production (+ indirect sales tax + depreciation)
in current or "market" prices
in base year prices-> ex., holding prices fixed to base year to remove effect of inflation