AP ECO Macroeconomic Measurements

Front

The approximate rate of inflation in Year 3 is _____ percent.

Back

5

Front

If a country has a working-age population of 200 million, 135 million people with jobs, and 15 million people unemployed and seeking employment, then what is its unemployment rate?

Back

10%.

Front

What can be concluded about the cost of a typical market basket in 2008 if the CPI was 120?

Back

20 percent more than the same market basket purchased in the base year.

Front

Which one of the following transactions is included in a current year's GDP as investment spending? Anton purchased his friend's condo., Ronnie bought a new BMW., Melanie bought a new washing machine for her condominium., Maggie bought a play-gym set for her day-care business.

Back

Maggie bought a play-gym set for her day-care business.

Front

Suppose the real interest rate is 2.1% and the nominal interest rate is 5.4%. Then the expected inflation rate is:

Back

3.3%.

Front

When there is deflation in the economy:

Back

the general price level falls.

Front

Double counting would occur if: used goods were included in the GDP calculation.

Back

used goods were included in the GDP calculation.

Front

If the labor force totals 100 million persons and 90 million are actively working, then the unemployment rate is ________.

Back

10%

Front

Eli's real wage has: Over the last year, Eli has been working very hard and his employer has taken notice by giving him a 6% raise in his salary. During this last year, overall prices in the economy have increased by 4%.

Back

increased by 2%.

Front

When consumers purchase imported products, this is:

Back

subtracted from GDP.