Macro Unit Review

When GDP is adjusted for changes in the cost of living, so more accurate year to year price comparisons can made, it is referred to as:

• Aggregate Supply

• Nominal GDP

• Aggregate Demand

• Real GDP

When Alison, a college math professor, leaves her job at a small rural college and starts looking for a job at large urban university, she is

• Structurally unemployed

• Cyclical unemployed

• Season unemployed

• Frictional unemployed

When the economy is working properly, what is the unemployment rate?

• 0 to 3 percent

• 4 to 6 percent

• 8 to 10 percent

• 10 - 12 percent

In a typical business cycle, what stage immediately follows a peak?

• Growth

• Trough

• Expansion

• Contraction

What is the difference between a recession and a depression?

• A recession is a period of economic growth while a depression is a period of economic contraction.

• A recession is more severe than a depression and lasts longer.

• A depression is a particularly deep recession with high levels of unemployment.

• Unlike a recession, a depression includes high levels of inflation

The “market basket” that is used by the Bureau of Labor Statistics to calculate prices is made up of which of the following?

• typical goods and services for an urban household

• food and necessary services for any family

• food items only

• nonfood items only

The lowest point in an economic contraction is called

• A peak

• A trough

• A recession

• A depression

Which of the following is an example of a final good or service?

• Lumber purchased by a construction company to use in building houses

• A cake purchased from a bakery for a wedding

• Coffee beans a coffee shop purchases to make coffee

• Wheat a bakery purchases to make bread

As you move from left to right, the aggregate demand curve

• Slopes upward

• Slopes downward

• May slop either upward or downward

• is horizontal

A typewriter repairman loses their job because no one uses typewriters anymore

• Structural unemployment

• Frictional unemployment

• Seasonal unemployment

• Cyclical unemployment