Macroeconomics Unit

Which government agency is NOT tasked with measuring data related to the three big macroeconomic goals?

• Department of Education

• Federal Reserve Bank

• Bureau of Economic Analysis

• Bureau of Labor Statistics

The most common number used to measure economic growth is

• Gross Domestic Product

• Consumer Price Index

• Unemployment Rate

• Production Possibilities Curve

The Consumer Price Index is used to help measure the amount of ____ in the U.S. to better help achieve the goal of ______.

• inflation, price stability

• money, monetary policy

• unemployment, full employment

• change, economic stability

Which economic measure is the total value of all goods and services produced within a country's borders adjusted for inflation?

• CPI

• Real CPI

• Real GDP

• GDP per capita

Which action causes US GDP to increase?

• Japan buys US Government Bonds

• Japan sells Japanese bonds to US

• The US exports machinery to Japan

• The US imports Japanese cars

When there is inflation in an economy which is ALWAYS true?

• the purchasing power of the dollar increases

• the consumer price index has increased

• unemployment will automatically decrease

• exports to other countries increases

An economist is presented with information about the prices of a selection of goods over several years. This information would be MOST useful for which purpose?

• For calculating unemployment

• Calculating Gross Domestic Product

• To compile a price index to measure inflation

• Deciding whether or not to buy bonds on the open market

In October, Bill is laid off from his job as a Halloween costume maker solely because of a slow Halloween season. Which statement is true?

• Bill in naturally unemployed

• Bill is cyclically unemployed

• Bill is frictionally unemployed

• Bill is structurally unemployed

Which person below would be considered frictionally unemployed?

• Jill, who quit her job to become a full time student

• Jake, who has recently entered the labor force

• Jennifer, whose skills are no longer needed

• Jimmy, whose parents shut down the family farm.

If an economy is currently experiencing a contraction or recession, which stage of the business cycle will they experience next?

• peak

• trough

• expansion

• cyclical