Econ

Payments by the government to individuals for which no good or service is provided in return.

• Government purchases of goods and services

• Government transfers

• Efficiency wages

• Aggregate output

Sam, who is 55 years old and has been a steelworker for 30 years, is unemployed because the steel plant in his town closed and moved to Mexico. Sam is experiencing:

• Operational unemployment

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

GDP divided by the size of the population; equivalent to the average GDP per person

• Consumer Price Index (CPI)

• Unit-of-account-costs

• Gross Domestic Product (GDP)

• GDP Per Capita

Calculate by how much the prices changed between 2007 and 2008

• Prices decreased by 20%

• Prices increased by 5%

• Prices decreased by 4%

• Prices increased by 4%

Cyclical employment is the result of:

• Discrimination

• The minimum wage

• Normal job turnover

• Changing job skills

• The business cycle

The value of year 4's output in real dollar is

• $30

• $36

• $6

• $5.20

• $24

The consumer price index reflects the

• Level of prices for intermediate goods and services purchased by business.

• Average price of goods and services purchased by consumers

• Prices of all goods and services computed from the ratio of Nominal GDP to real GDP

• Level of prices for raw materials

• changes in the prices of goods and services typically purchased by consumers.

the real cost of changing a listed price

• Unit of account costs

• Efficiency wages

• Menu costs

• Value added

Goods and services sold to other countries

• Chain linking

• Imports

• Exports

• Factor markets

Which of the following annual rates of inflation would most likely be called hyperinflation?

• 15%

• 2000%

• 5%

• 25%

• 13%