5-10

Question 1

macroeconomics is the study of

Answer 1

agrregate economic activity

Question 2

gdp is the measure of

Answer 2

aggregate economic output

Question 3

how to measure gdp

Answer 3

production = expenditure = income

Question 4

economists use what to measure the rate of inflation and to distinguish nominal gdp from real gdp

Answer 4

price indexes

Question 5

income per capita is calculated how

Answer 5

divinding the nations aggregate (or total) income by the number of people in the countey

Question 6

why would economic growth slow down or become negative

Answer 6

when aggregate spending decreases

Question 7

what is a recession

Answer 7

two straight quarters in which aggregate income falls

Question 8

what is the unemployment rate

Answer 8

ratio of workers without a job who are serching divided by the labor force

Question 9

what is national income accounts

Answer 9

a measure of the level of aggregate economic activity in a country

Question 10

equation for real gdp

Answer 10

real gdp in current year-befor year/ before year

Question 11

naminal gdp

Answer 11

that years prices

Question 12

real gdp

Answer 12

base year prices

Question 13

gdp deflator equation

Answer 13

nominal gdp/real gdp x 100

Question 14

cpi equation

Answer 14

same as gdp deflator equation

Question 15

inflation rate equation

Answer 15

price index of year-price index of base year/ price index of base year

Question 16

gdp per capita equation

Answer 16

gdp/total population

Question 17

gdp per worker equation

Answer 17

gdp/number of workers

Question 18

productivity is

Answer 18

value of goods and services that a worker generates for each hour of work

Question 19

physical capital

Answer 19

any good machine or building used for production

Question 20

unemployment rate equation

Answer 20

100% x unemployed/ labor force (employed and unemployed)