AP Macro Unit 2

Gross Domestic Product

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Which of the following is included in the calculation of the US GDP

• The money that consumers save when using coupons

• the benefit society receives from a cleaner environment

• online purchases of used products

• a computer produced in CHina by a US owned company

• a plane produced in the US but sold in Mexico

The value of which of the following is counted in the US GDP

• Foreign countries buying US treasury bills

• Transfer payments to the elderly

• salary bonuses given to investment bankers

• undeclared wages paid to illegal aliens

• the change in value of real estate in the US

Gross Domestic Product is equivalent to the sum of:

• Consumer spending, investment spending, government purchases, exports, and imports

• Consumer spending, investment spending, government purchases, and exports

• Consumer spending, investment spending, government purchases and net exports

• Consumer spending, consumption of fixed capital, government purchases and exports

Disinflation

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Intermediate goods

• Prices increasing at slower rates.

• Workers that are able and willing to work and actively looking for a job but aren’t working.

• Parts that go into the production of the final good.

• The dollar value of all goods and services produced within a country’s borders in a given year.

• All the spending on final goods and services produced in a given year.

Frictional Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Structural Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Cyclical Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.

Natural Rate of Unemployment

• Unemployment caused from a recession.

• Temporary unemployment or being between jobs but have transferable skills.

• Frictional plus structural unemployment. Unemployment that exists when the economy is healthy and growing.

• People who are no longer looking for a job because they have given up.

• Changes in the labor force make some skills obsolete and job loss is permanent.