Macroeconomics

Question 1

When Income is used for purposes other than domestic consumption is a

Answer 1

Leakage

Question 2

Individuals paying taxes to the federal government is considered in

Answer 2

Macroeconomics

Question 3

A productivity possibility curve measures the maximum amount of various goods and services an

Answer 3

Economy can produce at a given time

Question 4

A measure of the market value of all final goods and services produced within the us during one year period

Answer 4

Gross domestic product

Question 5

What is measured at current prices

Answer 5

Nominal GDP

Question 6

What is measured at constant prices

Answer 6

Real GDP

Question 7

Measure of the market value of maximum production of final goods and service that is possible in the economy

Answer 7

Potential GDP

Question 8

During a recession

Answer 8

Actual national income is less than potential national income as a result of decreased demand

Question 9

Product should be included in GDP the year it was finished not when it was

Answer 9

Sold

Question 10

adjustment from GNP to nnp is deducting

Answer 10

Depreciation

Question 11

Positive GDP gap exist when

Answer 11

Potential GDP exceeds real GDP

Question 12

Workers bring transitioned between jobs is

Answer 12

Fractionally unemployed

Question 13

Workers whose prior jobs have been greatly reduced or eliminate or lack skills

Answer 13

Structural employment

Question 14

Downturn in business cycle related to

Answer 14

Cyclically unrmployed

Question 15

A person must b 16 to consider to b part of the

Answer 15

Workforce

Question 16

The cyclical rate is the difference between total rate of unemployment and natural rate of unemployment

Answer 16

Cyclical

Question 17

Cyclical unemployment is not considered part of

Answer 17

Natural

Question 18

Marginal propensity to consume measures the change in consumption spending as the percent change

Answer 18

In disposable income

Question 19

Average propensity to consume is

Answer 19

Consumable goods divided by disposable income for that year

Question 20

With increase in government spending the demand curve shifts

Answer 20

Upwards and right

Question 21

Acquisition of common stock is considered

Answer 21

Savings

Question 22

Increase in the minimum wage rate would be an increase in the cost of economic resources which would

Answer 22

Shift the supply curve inward (reduction in supply)

Question 23

A decrease in labor would shift the aggregate supply

Answer 23

Inward

Question 24

A Keynesian supply curve is horizontal up to the assumed level of output at

Answer 24

Full employment

Question 25

What accompany an unexpected reduction in aggregate supply

Answer 25

An increase in the price level

Question 26

An increase in selling price does not cause a

Answer 26

Shift in supply curve

Question 27

A higher level of output reflects a shift in the supply curve to the right

Answer 27

Increase in quantity of output and a decrease in price

Question 28

A rise in exports will shift the demand

Answer 28

Outward

Question 29

Aggregate demand and supply intersect at a price and quality

Answer 29

Above or below the potential GDP

Question 30

Variations in business cycles are attributable to

Answer 30

Duration and intensity

Question 31

A peak in a business cycle is the end of an

Answer 31

Expansionary period

Question 32

The business cycle is measured by

Answer 32

Real GDP

Question 33

A general decline in goods and services is

Answer 33

Deflation

Question 34

The formula to compute percentage changes is

Answer 34

Current - prior / prior

Question 35

During inflation depreciation reflects the old price of an asset and not the

Answer 35

Current price of the asset

Question 36

In macroeconomics free market flow model what is no considered an injection

Answer 36

Imports because injections are sources of amounts added to domestic production that do not recur from domestic consumption