3 Flashcards
it has been shown that increase in the money supply are directly related to the rate of inflation. if the previous statement is true, then
hyperinflation will normally be associated with large increases in the money supply
deflation is occuring in a nation; the implications of this is/are that
holding nominal wages constant, the real wage would rise
to calculate the labor force participation rate, you only need to know the
number of employed and unemployed and the relevant adult population
Katherine was laid off from her job 11 months ago. After searching for a job for months, Katherine gives up her job search because she feels there are no jobs available for her. Economists would classify Katherine as
a discouraged worker
inflation occurs when
the overall level of prices rise
Pietro quits his job in New York and moves to California. After two months he finds a job. This is an example of — unemployment
frictional
a member of the labor force is defined as someone who is
already employed or actively seeking work
the unemployment rate is the percentage of the
labor force that is unemployed
gross domestic product (GDP) is best defined as the total market value of all
final goods and services produced within a country within a given time
if over a period of time real gross domestic product (GDP) increases, while nominal GDP decreases, then this implies
a significant drop in the price level
the gross domestic product (GDP) deflator is a measure of
price level
nominal gross domestic product (GDP) increases if
current prices of quantities increase
which of the following statements is true about the natural rate of unemployment
sometimes the actual rate is below the natural rate
Bob sells his car to Stan’s Used Car Lot for $5,000. Stan’s Used Car Lot sells the car to Bill for $5,500. This transaction contributes — to gross domestic product (GDP)
$500
A company produces a computer, It pays $100 for the keyboard and outer 1/1 case, $200 for the internal hardware, and $100 for the software. It sells the computer to a consumer for $500 The contribution to gross domestic product (GDP) is
$500
to determine living standards for the average person, we calculate
per capita GDP
an economic downturn can lead to mainly which type of unemployment
cyclical
the business cycle measures
short-run fluctuations in economic activity
the phase of the business cycle where the economy is growing faster than usual is called
an economic expansion
the phase of the business cycle where economic activity is decreasing is called
an economic contraction
which of the following people would be officially considered unemployed
Jenna, who just graduated college and is searching for a job that fits her graphic design skills
a computer company builds a new factory. this is included in the — category of GDP
investment
the government purchases category of GDP includes spending by
federal, state, and local governments
some individuals are unemployed because it takes time for them to find jobs that fit their skill sets. these individuals would be considered to be
frictionally unemployed
