Econ Core PF, S&D, Fed, Macro

Consumer spending (personal consumption expenditures) include:

• all commodities that business firms buy.

• the purchase prices paid for stocks and bonds by individual households.

• the construction of residential housing.

• all goods and services bought by households.

All final goods and services that make up GDP can be expressed in the form:

• GDP = C + I - G + Net Exports.

• GDP = C + I + G + Net Exports.

• GDP = C + I + Net Exports.

The unemployment rate equals the number of persons:

• unemployed divided by the number employed.
• unemployed divided by the number in the labor force.
• unemployed divided by the population age 16 and over.
• not working divided by the population age 16 and over.

Inflation can be seen in, and is reflected by, an increase in:

• average increase in real wages of workers.

• average increase in real GDP.

• average price of goods in the CPI basket.

• average price all consumer products.

A good way to measure standard of living is by calculating

• the economic growth rate
• the inflation rate
• the unemployment rate
• per capita GDP

If the prices of many products _______, inflation is present.

• pull
• rise
• fall
• remain the same

CPI stands for

• Custom Personalized Insurance

• Consumer Price Index

• Correlated Purchasing Indicators

• Costs Per Item

Ceteris paribus, tax increases to businesses and people result in

• an increase in international trade

• lower GDP

• higher GDP

• no change in GDP

Ceteris paribus, an increase in government spending results in

• an increase in international trade

• lower GDP

• higher GDP

• no change in GDP

Unemployment is harmful to an economy (GDP) because

• it reduces government spending

• it reduces spending on imports

• it reduces spending on exports

• it reduces consumer spending