AP Macroeconomic Benchmark Review

Evelyn is analyzing a country's macroeconomic data for the year 2013. Based on the data provided, what was the GDP of the country in that year?

• $220 billion

• $282 billion

• $304 billion

• $309 billion

• $347 billion

Charlotte is studying economics and wants to understand what is included in the United States gross domestic product. Which of the following scenarios would be counted?

• Clean air

• Child care a father provides for his child

• An automobile produced in Sweden by a United States firm

• A car produced in the United States and sold in Europe

• Medical services not provided due to preventative health care

Abigail has just graduated from college and is now interviewing for jobs. Abigail would best be described as

• cyclically unemployed

• frictionally unemployed

• structurally unemployed

• not in the labor force

• a discouraged worker

Which of the following is an example of frictional unemployment?

• Aiden, a former mayor, doing volunteer work

• A factory worker who loses her job because of recession

• A college student working part-time at the campus bookstore

• Anika, a college graduate, interviewing for two available positions

• An architect whose job is replaced by computer software that designs buildings

Which of the following types of unemployment is caused by a recession?

• Hidden

• Frictional

• Seasonal

• Structural

• Cyclical

The consumer price index (CPI) is criticized for

• overstating the true burden of inflation because it does not recognize consumers’ ability to substitute goods and services as prices change

• overstating the true burden of inflation because it recognizes consumers’ ability to substitute goods and services as prices change

• understating the true burden of inflation because it does not recognize consumers’ ability to substitute goods and services as prices change

• understating the true burden of inflation because it recognizes consumers’ ability to substitute goods and services as prices change

• overstating the true burden of inflation because it reflects the prices of both intermediate goods and final goods

Which of the following is most likely included in gross domestic product?

• Matt gives his secondhand bicycle to his brother.

• Sal paints his own bicycle.

• Ali buys a new bicycle.

• Mike buys a share of stock in a bicycle firm.

• Daniel bikes to school every day.

Alice, who has left her job in New York, is moving to Atlanta and looking for a job. In terms of employment status, Alice can most accurately be described as

• involuntarily unemployed

• cyclically unemployed

• seasonally unemployed

• frictionally unemployed

• not in the labor force

Which of the following groups of people would benefit from unanticipated inflation?

• Savers

• Borrowers

• Lenders

The table below gives population and labor-market data for an economy. The unemployment rate in this economy is:

• 3.3%

• 5%

• 10%

• 33.3%

• 50%