AP Macro Unit 2 Review

Select the three macroeconomic policy goals from the following list

• Keep Prices Stable

• Limit Unemployment

• Economic growth over time

• Keep the economy shrinking over time

What measure shows how well the economy is doing over time?

• Gross domestic product

• Inflation rate

• Unemployment rate

• the Misery Index

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

• Consumer spending

• Government spending

• Net exports

• Net imports

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

• Gross Domestic Product

• Inflation Rate

• Unemployment Rate

• the Misery Index

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

• Discouraged Workers

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

• Cyclical Unemployment

• Structural Unemployment

• Super Unemployment

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

• Frictional Unemployment

• Cyclical Unemployment

• Structural Unemployment

• Super Unemployment

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

• True

• False

What measure shows the rate at which the money supply is increasing relative to the number of people using it?

• Gross Domestic Product

• Inflation Rate

• Unemployment Rate

• the Misery Index

An increase in the supply of money that leads to an increase in prices

• Inflation

• Deflation