AP Macroeconomics - Unit 2 Review

Select the three macroeconomic policy goals from the following list.

• Keep the economy growing over time

• Limit unemployment

• Keep prices stable

• Raise unemployment

• Keep the economy shrinking over time

Which of the following is NOT included in a country's GDP?

• Consumer Spending

• Business Spending

• Government Spending

• Net Exports

• Net Imports

What measure shows what percentage of the eligible workers do not have jobs?

• Gross Domestic Product

• Unemployment Rate

• Inflation Rate

When people are in the process of looking for a job after being fired or are transitioning to a new position, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

When people can't find a job because of a lack of demand for their skills or type of labor, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

When people can't find a job because the economy is not doing well due to a recession, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

In the United States, a healthy economy should have an unemployment rate of 4-6%.

• True

• False

During a recession, which of the following is likely to occur?

• an increase in real wages
• an increase in production
• and increase in the GDP growth rate
• an increase in the unemployment rate

The unemployment rate is calculated as the number of

• unemployed persons divided by number of employed persons
  
• persons in the labor force divided by the number of unemployed
  
• unemployed divided by size of the labor force
  
• employed persons divided by number of unemployed persons

The unemployment rate does not account for which two types of people?

• discouraged workers (hidden unemployed) and those employed
• full time carers and those in school
• retirees and those in prison
• discouraged workers (hidden unemployed)  and underemployed