Macro Midterm

Question 1

Real GDP formula

Answer 1

Real GDP/Capita=Real GDP/Total Population

Question 2

How is a countries standard of living measured

Answer 2

GDP/Capita

Question 3

Real GDP/ capita isn’t adjusted for pollution, crime, or changes in quality of services

Answer 3

True

Question 4

A Small but consistent economic growth rate can greatly improve a countries standard of living in the long ruun

Answer 4

True, Economic growth compounds over tim

Question 5

% change in real GDP/ Capita=

Answer 5

% change in real GDP- %Change in population

Question 6

Unemployment Rate

Formula

Answer 6

=(Number of Unemployes/ Labor Force) X 100

Question 7

Labor Force Participation Formula

Answer 7

((Labor Force)/(Working-age population)) X 100

Question 8

Employment-population ratio

Answer 8

EmploymentWorking-age population X100

Question 9

Labor force

Answer 9

Unemployed & Employed

Question 10

Employment that there is always

Answer 10

Frictional & Structural

Question 11

Economy is at full emplyment

Answer 11

Cyclical unemployment=0

Question 12

Positive cyclical unemployment indicates

Answer 12

Economy is unhealth

Question 13

Natural rate of unemployment formula

Answer 13

Frictional + Structura;

Question 14

Cyclical rate formula

Answer 14

Unemployment rate- natural rate of unemployment

Question 15

CPI

Answer 15

idk

Question 16

GDP deflator

Answer 16

idk

Question 17

Substitution bias
Quality Bias
New Product Bias
Outlet bias

Answer 17

Lookem up

Question 18

nominal interest rate

Answer 18

idk

Question 19

Purchasing power of a savings acct

Answer 19

idk

Question 20

Salaries

Answer 20

X’s money in terms of Y’s Money= (X’s Money in term of X’s $) X (CPI of Y/ CPI of X)