Chapter 19 Flashcards
An equivalent term for “real national income” is
a) nominal national income
b) current-dollar national income
c) constant-dollar national income
d) actual national income
e) potential national income
c) constant-dollar national income
An upward trend in real national income over an extended period of time is called
a) an inflationary boom
b) aggregate output
c) constant-dollar national income
d) potential national income
e) economic growth
e) economic growth
to compare the economy’s aggregate output in two different time periods, economists compare the
a) nominal national income for the two periods
b) potential national incomes for the two periods
c) real national income for the two periods
d) unemployment rates for the two periods
e) inflation rates for the two periods
c) real national income for the two periods
consider a small economy with 3 individuals where each individual produce and sells $1000 worth of final goods and services. The national income for this economy is
a) $3000
b) less than $3000 if some of the income is saved
c) more than $3000 if some of the income is invested
d) less than $3000 if there are taxes in this economy
e) more than $3000 if the individual are earning profits
a) $3000
Which of the following correctly describes the meaning of the expression Y
a) actual output is less than potential output - recessionary gap
- the table below provides macroeconomic data for a hypothetical economy. Dollar amounts are all in constant-dollar terms. Refer to table 19-1 in which years was this economy experiencing a recessionary gap?
a) 2015, 2016
b) 2012, 2013, 2017
c) 2014, 2018
d) 2012, 2013, 2014
e) 2016, 2017, 2018
b) 2012, 2013, 2017
- the table below provides macroeconomic data for a hypothetical economy. Dollar amounts are all in constant-dollar terms. Refer to table 19-1. In which years are the factors of production in this economy said to be “fully employed”?
a) 2012, 2013, 2017
b) 2014, 2018
c) 2015, 2016
d) all years
e) none of the years
b) 2014, 2018
If a country’s labour force is 15 million people, and 1.35 million of those are unemployed, the country’s unemployment rate is
a) 2.5%
b) 3.3%
c) 4.5%
d) 6.7%
e) 9.0 %
e) 9.0%
Suppose a country has an unemployment rate of 20%. If we know the population is 38 million and the labour force is 25 million, then the number of people unemployed must be
a) 5 million
b) 13 million
c) 20 million
d) 7.6 million
e) 2.6 million
a) 5 million
if the price index is P1 in year 1 and p2 in year 3, the average inflation rate per year over this period is calculated as
a) (p2-p1) x (100/2)
b) [(p2-p1)/p1] x 100
c) [(p2-p1)/p1] x [100/2]
d) [(p1-p2)/p2] x 100
e) [(p1-p2)/p2] x [100/2]
c) [(p2-p1)/p1] x [100/2]
define macroecoenomics
study of the determination of economic aggregates, such as total output, total employment, the price level, and the rate of economic growth
define nominal national income
total national income measured in current dollars. also called current-dollar national income
define real national income
national income measured in constant (base-period) dollars. It changers only when quantities change
define recession
a fall in the level of real GDP. Often defined precisely as two consecutive quarters of negative growth in real GDP
define business cycle
fluctuations of real national income around its trend value that follow a more or less wavelike pattern
define potential output (Y*)
the real GDP that the economy would produce if its product resources were fully employed. Also called potential GDP
