WorksheetsAP Macro- Unit 2
Total questions: 45
Worksheet time: 45mins
Mr. Gerlecz is quitting his job as a teacher & coach and moving to Montana. Gerlecz is.....
Cyclically unemployed
Seasonally Unemployed
Structurally Unemployed
Frictionally Unemployed
In a typical circular flow model describing the interaction of businesses and households, which of the following is/are true?
I. Households buy factors of production and goods
II. Firms buy factors of production and goods
III. Households buy factors of production
IV. Firms buy factors of production
V. Firms buy goods
VI. Households buy goods
I only
II only
III and IV only
IV and VI only
A periodic but irregular up-and-down movement of total production and other measures of economic activity.
Gross Domestic Product
Investment
Business Cycle
Real GDP
The market value of all the final goods and services produced within a country in a given time period.
Gross Domestic Product
Net exports of goods and services
Nominal GDP
Real GDP
The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories
Exports of goods and services
Real GDP
Investment
Net exports of goods and services
Items that firms in the United States produce and sell to the rest of the world
Imports of goods and services
Investment
Nominal GDP
Exports of goods and services
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
Which of the following will be included in the current year's calculation of GDP?
$50 cash earned but not reported by your neighbor for babysitting
Purchase of lifeguard equipment at a summer camp
The purchase of a used car from a friend
The purchase of a vintage surfboard from thrift store
Assume the CPI increases from 100 to 120 between 2022 and 2023. Which of the following must be true?
A gallon of gas that was $2.50 in 2014 will be $3.00 in 2015
The price for all goods increased between 2014 and 2015
There was unanticipated inflation
The average price of a specific market basket increased 20%
If the nominal GDP in a given year is $500 billion and the GDP deflator for that year is 125, how much is the real GDP?
$1,125 billion
$625 billion
$500 billion
$400 billion
. If a worker receives a raise in their nominal wage from $10 to $15 per hour at the same time that price level doubles, the worker's real wage has approximately
increased by 50%
increased by 100%
decreased by 50%
stayed the same
The official unemployment rate is not always the most accurate indicator of actual unemployment in the economy because
Part time workers are considered unemployed
The official rate does not include persons who have given up looking for work
Full employment is greater than the labor force
The unemployment rate is greater than natural unemployment
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.
Expenditure Approach
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.
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.
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.
Peak
Someone who wants more hours but can’t get them but is still considered employed.
Period of economic downturn when output and employment are falling.
The point at which a recession begins to improve and move into a period of recovery.
Period of economic upturn when output and employment are rising.
The point at which a recovery period slows down and begins to move into a recession.
Which of the following components makes up the largest percentage of GDP measured by aggregate spending?
consumer spending
investment spending
exports
imports
government purchases of goods and services
If the Price of the Market Basket in 2021 is $40 and the Price of the Market Basket in the base year is $20, what is the CPI for 2021?
The value of which of the following is counted in the United States gross domestic product?
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
The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?
Yes - Consumer spending
Yes - Government Spending
No - Underground Economy
No - Non-market activity
A shoe produced in South Korea and sold in the U.S.
Included in U.S. GDP
Included in South Korea GDP
Included in Canadian GDP
A higher GDP generally correlates to a(n) ___________ standard of living.
higher
lower
unrelated
Is this counted in the GDP of the US?
Cars made by a Japanese company in California.
Yes
No
Is this counted in the GDP of the US?
The materials (lumber, cement, bricks) used to build a house.
Yes
No
Is this counted in the GDP of the US?
A new home that was recently built.
Yes
No
Is this counted in the GDP of the US?
A plumber's purchase of a two-year-old truck from Craigslist.
Yes
No
In which part of the GDP calculation does this fit?
You spend $15 at AMC to see the latest Avengers movie.
Consumer spending
Government spending
Investment spending
Net exports
In which part of the GDP calculation does this fit?
The US military spends $5 billion on five new helicopters.
Consumer spending
Government spending
Investment spending
Net exports
The purchase of new capital goods (tools, instruments, machines, buildings) and additions to inventories
Exports of goods and services
Real GDP
Investment
Net exports of goods and services
