Macro MidTerm

What do households provide to the resource market?

• land, labor, capital 
• money
• people
• income

What are the four main parts of the circular flow diagram?

• Product Market, Stock Market, Factor Market, Fish Market

• Product Market, House Market, Factor Market, Good Market

• Factor Market, Product Market, Households, Firms

• Factor Market, households, Stock Market, super market

What is the formula for real GDP?

(#+#+#+<#-M>) Expenditure Approach

Why does real GDP rise during an expansion?

• Consumer spending decreases

• Government spending decreases

• Spending for exports increases, or imports decrease

• All forms of spending decrease

How is the civilian unemployment rate computed?

• (Employed / Civilian labor force) x 100

• (Unemployed / Civilian labor force) x 100

• • (Labor force / Unemployed) x 100

• (Unemployed / Population) x 100

What are the three types of unemployment?

• Structural, Temporary, Seasonal

• Cyclical, Frictional, Structural

• Frictional, Cyclical, Seasonal

• Structural, Cyclical, Temporary

What is frictional unemployment?

• Unemployment due to a mismatch of skills

• Unemployment due to a recession

• Unemployment caused by the time needed for workers to find new jobs

Who experiences frictional unemployment?

• People who are retiring

• Workers with marketable skills changing jobs, entering, or reentering the labor force

• Workers who lack necessary skills for available jobs

• Employees laid off during a recession

What is structural unemployment?

• Unemployment caused by skills mismatch for available jobs

• Unemployment due to temporary economic changes

• Unemployment due to lack of job openings during a recession

• Unemployment due to relocation of jobs overseas

What is cyclical unemployment?

• • Unemployment caused by workers changing jobs

• Unemployment due to the time needed for retraining workers

• Unemployment caused by lack of jobs during a recession

• • Unemployment due to technological advancements