MMacro

Question 1

Real GDP

Answer 1

-Represents the total value of all goods and services produced within a country, expressed in constant prices to account for changes in purchasing power over time.

Question 2

What is the current level of real GDP for the U.S?

Answer 2

22.67 trillion

Question 3

what country has the highest real GDP?

Answer 3

China

Question 4

How much is the per capita real GDP in the U.S

Answer 4

About $70,000

Question 5

What country has the highest per capita real GDP

Answer 5

Luxembourg (127,673)

Question 6

Where does the U.S rank based on per capita real GDP?

Answer 6

7th

Question 7

What country has the highest self expressed happiness?

Answer 7

Finland

Question 8

Where does the U.S rank in terms of self expressed happiness

Answer 8

19th

Question 9

Inflation

Answer 9

the general increase in prices of goods and services over time, which results in the decrease in purchasing power of money.

Question 10

Difference between nominal and real values?

Answer 10

nominal values are the raw numbers we deal with, while real values take into account changes in purchasing power over time, giving a more accurate reflection of something’s worth.

Question 11

What is the current level of inflation in the U.S?

Answer 11

3.4%

Question 12

Given the level of inflation, how long will it take for the real value of money to be cut in half?

Answer 12

20 years

Question 13

What’s the 4 phases of the business cycle

Answer 13

Expansion: Rises after trough/growth
Peak: Highest point in a cycle
Recession: downturn after peak
Trough: Lowest point in a cycle

Question 14

Discuss alternate ways of measuring an economy’s success behind real GDP or real per capita

Answer 14

-World happiness rankings
-Cost of living
-Unemployment rate

Question 15

Most Americans believe that the U.S is the wealthiest economy in the world. Argue against this proposition.

Answer 15

Although the U.S has a high real GDP, the metric overlooks per capita and other elements like unreported income such as tips and access to healthcare, education, and other service providers

Question 16

Compare and contrast U-3 and U-6 definition of unemployment

Answer 16

both U-3 and U-6 measure unemployment for unemplyed citizens, U-3 focuses on the actively unemployed, while U-6 focuses on additional groups like marginally attached workers and involuntary part-time workers.

Question 17

What is the current U-3 unemployment rate

Answer 17

4%

Question 18

Describe the most profound economic event since the birth of Christ

Answer 18

The Age of Enlightenment and the Industrial Revolution built up to the free market of ideas and the rise of democracy.

Question 19

Explain why the numerical value of money is meaningless?

Answer 19

It’s worth depends on what you can exchange it for. Its value is relative and fluctuates based on what goods or services you can buy with it at any given time

Question 20

Types of unemployment

Answer 20

-Cyclical
-Frictional
-Seasonal
-Structural
-Natural unemployment
-Long term unemployment

Question 21

Occurs when people are between jobs, because they’re looking for a new one or just entering the workforce.

Answer 21

Frictional unemployment

Question 22

When there’s a downturn in the economy, leading to fewer job opportunities as businesses cut back on production

Answer 22

Cyclical unemployment

Question 23

When jobs are only available during certain times of the year, like holiday retail or agricultural work.

Answer 23

Seasonal unemployment

Question 24

Arises from changes in the economy, like technological advancements or shifts in consumer preferences,

Answer 24

Structural unemployment

Question 25

the ongoing level of unemployment that exists in an economy from frictional and structural

Answer 25

Natural unemployment

Question 26

When individuals are unemployed for an extended period, typically beyond six months

Answer 26

Long term unemployment

Question 27

Which three countries – outside of the U.S. – hold the most debt?

Answer 27

Japan, China, and UK

Question 28

What are three largest sources of Federal tax revenue?

Answer 28

-individual income taxes
-payroll taxes
-corporate income taxes

Question 29

Democrats complain that the rich do not pay their fair share of Federal taxes. Agree or disagree. Write a paragraph supporting your position.

Answer 29

disagree. high-income earners already contribute a good portion of total tax revenue. The top earners typically shoulder burden of federal income taxes, often paying a higher percentage of their income compared to lower-income individuals.

Question 30

Define national debt

Answer 30

the total amount of money that a government owes to its creditors.

Question 31

What proportion of the national debt is held by the public?

Answer 31

98%

Question 32

Define U.S deficit

Answer 32

the difference between what the government spends and what it earns in revenue in a given year.