Free Printable Macro Unit 2 Review

1.

the market value of all final goods and services produced within a country in a given time period

a)

Gross National Product (GNP)

b)

Consumer Price Index (CPI)

c)

Gross Domestic Product (GDP)

d)

Net Domestic Product (NDP)

2.

the four components of GDP are...

a)

savings

b)

exports

c)

imports

d)

consumption, investment, government spending, net exports

3.

this GDP values output using current prices and is not corrected for inflation

a)

Nominal GDP

b)

Inflation-adjusted GDP

c)

Adjusted GDP

d)

Real GDP

4.

this GDP is corrected for inflation

a)

Real GDP

b)

Nominal GDP

c)

Per Capita GDP

d)

Gross National Product

5.

$100\times\frac{nomial\ GDP}{real\ GDP}$

a)

GDP deflator

b)

CPI

c)

inflation rate

d)

amount in today's dollars

6.

$100\times\frac{\cos t\ of\ basket\ in\ current\ year}{\cos t\ of\ basket\ in\ base\ year}$

a)

CPI

b)

GDP deflator

c)

inflation rate

d)

u-rate

7.

$\frac{CPI\ this\ year\ -\ CPI\ last\ year}{CPI\ last\ year}$

a)

amount in today's dollars

b)

GDP deflator

c)

CPI

d)

inflation rate

8.

$amount\ in\ year\ T\ dollars\ \times\frac{price\ level\ today}{price\ level\ in\ year\ T}$

a)

inflation rate

b)

amount in today's dollars

c)

GDP deflator

d)

CPI

9.

nominal interest rate - inflation rate

a)

nominal interest rate

b)

real interest rate

c)

CPI

d)

GDP deflator

10.

the group of institutions that helps match the saving of one person with the investment of another

a)

financial markets

b)

financial system

c)

financial intermediaries

d)

mutual funds

11.

institutions through which savers can directly provide funds to borrowers

a)

loan sharks

b)

financial markets

c)

financial institutions

d)

financial intermediaries

12.

certificate of indebtedness

a)

bond market

b)

stock market

13.

claim to partial ownership in a firm

a)

stock market

b)

bond market

14.

institutions through which savers can indirectly provide funds to borrowers (banks, mutual funds)

a)

Financial institutions

b)

Investment intermediaries

c)

Monetary facilitators

d)

Financial intermediaries

15.

institutions that sell shares to the public and use the proceeds to buy portfolios of stocks and bonds

a)

Mutual funds

b)

Savings accounts

c)

ETFs

d)

Hedge funds

16.

the portion of a households' income that is not used for consumption or paying taxes

a)

private saving

b)

national saving

c)

public saving

17.

tax revenue less government spending

a)

public saving

b)

private saving

c)

national saving

18.

private saving + public saving

a)

national saving

b)

budget surplus

c)

budget deficit

19.

Y-T-C

a)

private saving

b)

public saving

c)

national saving

20.

T-G

a)

national saving

b)

private saving

c)

public saving

21.

Y-C-G

a)

national saving

b)

private saving

c)

public saving

d)

I

22.

an excess of tax revenue over govt spending

a)

T-G

b)

public saving

c)

budget surplus

d)

budget deficit

23.

a shortfall of tax revenue from govt spending

a)

G-T

b)

budget surplus

c)

negative public saving

d)

budget deficit

24.

the purchase of new capital

a)

investment

b)

consumption

25.

when the govt borrows to finance its deficit leaving less funds available for investment

a)

Lower interest rates

b)

Crowding out

c)

Increased investment opportunities

d)

Higher interest rates

26.

people not working who have looked for work during previous four weeks and temporary layoffs

a)

employed

b)

unemployed

c)

not in labor force

27.

100 x (# of unemployed / labor force)

a)

labor force participation rate

b)

u-rate

28.

$100\times\frac{labor\ force}{adult\ population}$

a)

u-rate

b)

labor force participation rate

29.

the deviation of unemployment from its natural rate

a)

Frictional unemployment

b)

Structural unemployment

c)

Seasonal unemployment

d)

Cyclical unemployment

30.

occurs when workers spend time searching for the jobs that best suit their skills and tastes, short-term for most workers

a)

Cyclical

b)

Frictional

c)

Structural

31.

occurs when there are fewer jobs than workers, usually longer-term

a)

structural

b)

cyclical

c)

frictional

32.

increasing or extending unemployment insurance raises frictional unemployment

a)

true

b)

false

33.

the minimum wage may exceed the equilibrium wage for the least skilled or experienced workers causing structural unemployment

a)

true

b)

false

34.

the theory of efficiency wages is when firms voluntarily pay above equilibrium wages to boost worker productivity to increase firm's profit

a)

True

b)

False

Macro Unit 2 Review

Total questions: 34

Worksheet time: 9hrs 30mins

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