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Macro Unit 2 Review

Total questions: 22

Worksheet time: 12mins

Name
Class
Date
1.

What is National Accounts

a)

Required payments to the government

b)

Keep track of consumer spending, producer sales, among other flows of money

c)

Wages earned by labor

d)

Interest earned by those who lend their savings to firms or the government

2.

What is disposable income?

a)

Payments the Government makes to Individuals

b)

Total amount of Income households can save

c)

Total amount of Income households can spend on consumption

d)

Amount of funds borrowed by government in financial markets

3.

What are inventories?

a)

stocks of goods and raw materials held to facilitate business operations

b)

domestically produced goods and services that are sold to other countries

c)

Final goods and services are sold directly to the end user

d)

Profits earned by the owners of the firms’ physical capital

4.

GDP = C + I + G + (X-M). This approach to calculating GDP is known as the _________ approach

a)

Income

b)

Value-Added

c)

Expenditure

d)

Direct

5.

Which of the following IS included in GDP measurement

a)

Used goods

b)

Financial Assets

c)

Inputs

d)

Changes to Inventory

6.

What is Abhinav's favorite color?

a)

Blue

b)

Green

c)

Yellow

d)

I don't know he never responded to my text

7.

The percentage of the population aged 16 or older that is in the labor force

a)

Employment Subsidies

b)

Employed People

c)

Labor Force Participation Rate

d)

CPI

8.

The deviation of the actual rate of unemployment from the natural rate

a)

Natural Unemployment

b)

Frictional Unemployment

c)

Cyclical Unemployment

d)

Structural Unemployment

9.

Which of the following leads to an increase in the Natural Unemployment Rate?

a)

Job Training

b)

Generous Unemployment Benefits

c)

Employment Subsidies

d)

CPI

10.

Measure of the average change over time in the prices paid by consumers for a FIXED “market basket” of goods and services

a)

Circular-Flow Diagram

b)

Frictional Unemployment

c)

Real GDP

d)

CPI

11.

Real Value = (a)   Value / (Price Index/100)

12.

When is the AP Macroeconomics exam?

a)

May 5

b)

May 2

c)

May 10

d)

May 8

13.

Which of the following is a shortcoming of CPI? (Select Multiple)

a)

High Minimum Wages

b)

Substitution Bias

c)

Deflation

d)

Introduction of New Goods

14.

CPI = (Market Basket in Current Year)/(Market Basket in (a)   Year) x 100

15.

Measure of the overall level of prices in the economy

a)

GDP Deflator

b)

PPI

c)

Price Stability

d)

Aggregate Price Level

16.

Who WINS when inflation is HIGHER than expected?

a)

Workers subject to multi-year wage agreements

b)

Everybody wins

c)

anyone PAYING money at a fixed amount, such as borrowers

d)

anyone RECEIVING money at a fixed amount, such as lenders

17.

A

a)

B

b)

C

c)

D

d)

E

18.

What are Shoe-Leather Costs

a)

Costs that Arise from the way inflation makes money a less reliable unit of economic measurement

b)

Real costs of changing listed prices

c)

The cost of leather for shoes

d)

Transaction costs caused by inflation

19.

GDP Per (a)   = GDP/SIze of Population

20.

Alternation between economic downturns(recessions) and economic upturns(expansions)

a)

Real GDP

b)

Aggregate output

c)

CPI

d)

Business Cycle

21.

Natural Rate of Unemployment corresponds to the

a)

turning point

b)

introduction of new goods

c)

full-employment level of output

d)

real GDP over time

22.

What would you rate this presentation on a scale from 1-10?

a)

10

b)

10

c)

10

d)

10