Macroeconomics Flashcards

1
Q

When Income is used for purposes other than domestic consumption is a

A

Leakage

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2
Q

Individuals paying taxes to the federal government is considered in

A

Macroeconomics

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3
Q

A productivity possibility curve measures the maximum amount of various goods and services an

A

Economy can produce at a given time

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4
Q

A measure of the market value of all final goods and services produced within the us during one year period

A

Gross domestic product

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5
Q

What is measured at current prices

A

Nominal GDP

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6
Q

What is measured at constant prices

A

Real GDP

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7
Q

Measure of the market value of maximum production of final goods and service that is possible in the economy

A

Potential GDP

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8
Q

During a recession

A

Actual national income is less than potential national income as a result of decreased demand

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9
Q

Product should be included in GDP the year it was finished not when it was

A

Sold

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10
Q

adjustment from GNP to nnp is deducting

A

Depreciation

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11
Q

Positive GDP gap exist when

A

Potential GDP exceeds real GDP

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12
Q

Workers bring transitioned between jobs is

A

Fractionally unemployed

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13
Q

Workers whose prior jobs have been greatly reduced or eliminate or lack skills

A

Structural employment

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14
Q

Downturn in business cycle related to

A

Cyclically unrmployed

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15
Q

A person must b 16 to consider to b part of the

A

Workforce

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16
Q

The cyclical rate is the difference between total rate of unemployment and natural rate of unemployment

A

Cyclical

17
Q

Cyclical unemployment is not considered part of

A

Natural

18
Q

Marginal propensity to consume measures the change in consumption spending as the percent change

A

In disposable income

19
Q

Average propensity to consume is

A

Consumable goods divided by disposable income for that year

20
Q

With increase in government spending the demand curve shifts

A

Upwards and right

21
Q

Acquisition of common stock is considered

A

Savings

22
Q

Increase in the minimum wage rate would be an increase in the cost of economic resources which would

A

Shift the supply curve inward (reduction in supply)

23
Q

A decrease in labor would shift the aggregate supply

A

Inward

24
Q

A Keynesian supply curve is horizontal up to the assumed level of output at

A

Full employment

25
Q

What accompany an unexpected reduction in aggregate supply

A

An increase in the price level

26
Q

An increase in selling price does not cause a

A

Shift in supply curve

27
Q

A higher level of output reflects a shift in the supply curve to the right

A

Increase in quantity of output and a decrease in price

28
Q

A rise in exports will shift the demand

A

Outward

29
Q

Aggregate demand and supply intersect at a price and quality

A

Above or below the potential GDP

30
Q

Variations in business cycles are attributable to

A

Duration and intensity

31
Q

A peak in a business cycle is the end of an

A

Expansionary period

32
Q

The business cycle is measured by

A

Real GDP

33
Q

A general decline in goods and services is

A

Deflation

34
Q

The formula to compute percentage changes is

A

Current - prior / prior

35
Q

During inflation depreciation reflects the old price of an asset and not the

A

Current price of the asset

36
Q

In macroeconomics free market flow model what is no considered an injection

A

Imports because injections are sources of amounts added to domestic production that do not recur from domestic consumption