MacroEconomics - Part 1 - Master Many Questions

GDP, or gross domestic product, measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Inflation measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Unemployment measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is a recession, or contraction?

• A

• B

• C

• D

Which of the following is a trough?

• A

• B

• C

• D

If operators are fired and replaced with computer technology, the operators would be considered

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• dissatisfiededly unemployed dissatisfiededly unemployed

Seasonal unemployment

• Describes recent college graduates

• Is predictable

• Is a result of changes in technology

• Slows the economy Slows the economy

The unemployment rate will drop if

• A person is hired into a new job

• Someone who was previously laid off is rehired

• An unemployed person stops looking

• ALL of these answers are CORRECT

Which of these people is officially unemployed

• A secretary who took 6 months off for maternity leave

• An aspiring actress who waits tables but would rather act

• Maid who got fired and will start a new job in 2 weeks

• A student who only works 4 hours a week in the library