A government budget deficit ______ the real interest rate because ______.
Answer
Correct Answer:
raises; the demand for loanable funds increases
Note: This Question is unanswered, help us to find answer for this one
The compounding effect ________ savers and _________ borrowers.
Answer
Correct Answer:
Help; hurts
Note: This Question is unanswered, help us to find answer for this one
The immediate change is ______ in m1 of $1,000 and ______ in m2.
Answer
Correct Answer:
An increase; no change
Note: This Question is unanswered, help us to find answer for this one
Presently, gdp is ________ to compensate for the costs of environmental damage.
Answer
Correct Answer:
Not adjusted
Note: This Question is unanswered, help us to find answer for this one
In rbc theory, the lower the real interest rate, other things remaining the same, the ______ today.
Answer
Correct Answer:
Smaller is the supply of labor.
Note: This Question is unanswered, help us to find answer for this one
Durable goods and non-durable goods comprise approximately ________ of the supply side of the gdp.
Answer
Correct Answer:
45%
Note: This Question is unanswered, help us to find answer for this one
Consumption depends positively on ______ and investment depends negatively on ______.
Answer
Correct Answer:
-disposable income; the real interest rate
Note: This Question is unanswered, help us to find answer for this one
An increase in current income taxes ______ the supply of loanable funds today because it ______.
Answer
Correct Answer:
Decreases; decreases disposable income, which decreases saving.
Note: This Question is unanswered, help us to find answer for this one
Aggregate demand is more likely to _________________ than aggregate supply in the short run.
Answer
Correct Answer:
Shift substantially.
Note: This Question is unanswered, help us to find answer for this one
A rise in the money wage rate with no change in potential gdp creates ______.
Answer
Correct Answer:
Leftward shift of the SAS curve and no change in the LAS curve.
Note: This Question is unanswered, help us to find answer for this one
The most significant difference between a partnership and a sole proprietor is the ________.
Answer
Correct Answer:
Number of people contributing resources
Note: This Question is unanswered, help us to find answer for this one
A recession tends to make a _____________________.
Answer
Correct Answer:
Trade deficit smaller
Note: This Question is unanswered, help us to find answer for this one
One reason the ad curve is downward sloping is the __________ effect.
Answer
Correct Answer:
Interest rate
Note: This Question is unanswered, help us to find answer for this one
A nation's prosperity is sometimes measured in terms of ___________.
Answer
Correct Answer:
GDP per capita
Note: This Question is unanswered, help us to find answer for this one
A stagflation can turn into a cost-push inflation process when _______.
Answer
Correct Answer:
The quantity of money persistently decreases.
Note: This Question is unanswered, help us to find answer for this one
When one commercial bank borrows from another commercial bank, it pays the __________ rate.
Answer
Correct Answer:
Federal funds
Note: This Question is unanswered, help us to find answer for this one
The limited resources in demand in society are called the ___________ of production.
Answer
Correct Answer:
Factors
Note: This Question is unanswered, help us to find answer for this one
New investment is usually put into an economy when profit expectations are __________.
Answer
Correct Answer:
High
Note: This Question is unanswered, help us to find answer for this one
In economics, the factor of production "land" includes all of the following except ________.
Answer
Correct Answer:
Plastics
Note: This Question is unanswered, help us to find answer for this one
In a developing economy, __________.
Answer
Correct Answer:
Progressive taxation plays a role
Note: This Question is unanswered, help us to find answer for this one
In a competitive market equilibrium the ________ equals the ________ of the last unit sold.
Answer
Correct Answer:
Marginal benefit; marginal cost
Note: This Question is unanswered, help us to find answer for this one
Variables expressed in terms of money are called ______ variables.
Answer
Correct Answer:
Nominal
Note: This Question is unanswered, help us to find answer for this one
Total output refers to the goods and services made by _____ producers in a country.
Answer
Correct Answer:
All
Note: This Question is unanswered, help us to find answer for this one
Changes in _____ cannot shift the aggregate demand curve.
Answer
Correct Answer:
The price level
Note: This Question is unanswered, help us to find answer for this one
A period of stagflation can be the result of ________
Answer
Correct Answer:
A decrease in the AS curve
Note: This Question is unanswered, help us to find answer for this one
Part of the _____ is an economic downturn, which causes _____.
Answer
Correct Answer:
Not GDP; inflation
Note: This Question is unanswered, help us to find answer for this one
Saving is _____
Answer
Correct Answer:
The source of the supply of loanable funds.
Note: This Question is unanswered, help us to find answer for this one
Money that has no value other than as money is called ______ money.
Answer
Correct Answer:
Fiat
Note: This Question is unanswered, help us to find answer for this one
If the economy is in a recessionary gap, actual output will be _____ potential output.
Answer
Correct Answer:
Below
Note: This Question is unanswered, help us to find answer for this one
Everything else held constant, a decrease in net taxes ________ aggregate ________.
Answer
Correct Answer:
Increases; demand
Note: This Question is unanswered, help us to find answer for this one
During a business cycle expansion, total production ________ and total employment ________.
Answer
Correct Answer:
Increases: increases
Note: This Question is unanswered, help us to find answer for this one
Gdp equals aggregate income and also equals aggregate expenditure because _______.
Answer
Correct Answer:
Firms pay out as incomes (aggregate income) everything they receive from the sale of their output (aggregate expenditure)
Note: This Question is unanswered, help us to find answer for this one
With _____________ demand the price changes, but the amount purchased remains the same.
Answer
Correct Answer:
Perfectly inelastic
Note: This Question is unanswered, help us to find answer for this one
When firms agree to act as a monopoly and set prices they are called __________.
Answer
Correct Answer:
A cartel
Note: This Question is unanswered, help us to find answer for this one
When the fed buys bonds, its demand _____ the price of bonds, _____ nominal interest rates.
Answer
Correct Answer:
Increases; decreasing
Note: This Question is unanswered, help us to find answer for this one
When the demand of a product increases ______
Answer
Correct Answer:
The equilibrium price and quantity will increase
Note: This Question is unanswered, help us to find answer for this one
The quantity of real gdp supplied depends on all of the following except the _______.
Answer
Correct Answer:
Quantity of real GDP demanded
Note: This Question is unanswered, help us to find answer for this one
When the interest rate is high, planned investment is ________ so output is ________.
Answer
Correct Answer:
Low; low
Note: This Question is unanswered, help us to find answer for this one
When an economy is expanding, unemployment tends to _____ and overall prices tend to _____.
Answer
Correct Answer:
Fall; rise
Note: This Question is unanswered, help us to find answer for this one
Use the following data to answer the question: Y=$8,000 C = $6,200 I= $1,500 G = $1,500 NX = -$500 the unplanned change in inventories is ________ and real gdp will ________.
Answer
Correct Answer:
-700; increase
Note: This Question is unanswered, help us to find answer for this one
The apc is the amount of _____________ divided by the amount of income at a specific point.
Answer
Correct Answer:
Consumption
Note: This Question is unanswered, help us to find answer for this one
Nominal gdp differs from real gdp because _____.
Answer
Correct Answer:
Real GDP results from adjusting for changes in the price level
Note: This Question is unanswered, help us to find answer for this one
If the number of people in the labor force ________, then ________.
Answer
Correct Answer:
Increases; the labor force participation rate increases
Note: This Question is unanswered, help us to find answer for this one
If the economy is currently in a recessionary gap, real gdp will be ________ potential output.
Answer
Correct Answer:
Below
Note: This Question is unanswered, help us to find answer for this one
Gross domestic product and gross investment are measured _____.
Answer
Correct Answer:
BEFORE the depreciation of capital
Note: This Question is unanswered, help us to find answer for this one
Government expenditure ________ change potential gdp and taxes ________ change potential gdp.
Answer
Correct Answer:
can; can
Note: This Question is unanswered, help us to find answer for this one
Expansionary fiscal policy ________ the price level and ________ equilibrium real gdp.
Answer
Correct Answer:
Increase; increases
Note: This Question is unanswered, help us to find answer for this one
Everything else held constant, when the price of a product increases _______
Answer
Correct Answer:
The quantity demanded decreases
Note: This Question is unanswered, help us to find answer for this one
Domestic product is _______. national product is _______.
Answer
Correct Answer:
Production within a country; the value of goods and services produced anywhere in the world by the residents of a nation
Note: This Question is unanswered, help us to find answer for this one
Decreasing government spending ________ the price level and ________ equilibrium real gdp.
Answer
Correct Answer:
Decreases; decreases
Note: This Question is unanswered, help us to find answer for this one
"decreases in g will decrease the economy''s gdp by causing a(n) ________ in the ad.
Answer
Correct Answer:
Leakage and left shift
Note: This Question is unanswered, help us to find answer for this one
At macroeconomic equilibrium, total ________ equals total ________.
Answer
Correct Answer:
Spending; production
Note: This Question is unanswered, help us to find answer for this one
An increase in income taxes ________ employment and ________ potential gdp.
Answer
Correct Answer:
decreases; decreases
Note: This Question is unanswered, help us to find answer for this one
A cut in taxes ________, therefore shifting the aggregate demand curve to the ________.
Answer
Correct Answer:
Increases disposable income and consumption; right
Note: This Question is unanswered, help us to find answer for this one
A change in the price level produces a ________ the aggregate demand curve. i. shift in ii. change in the slope of iii. movement along
Answer
Correct Answer:
iii only
Note: This Question is unanswered, help us to find answer for this one
When real gdp increases, the change in consumption expenditure equals _______.
Answer
Correct Answer:
The marginal propensity to consume times ×the increase in real GDP
Note: This Question is unanswered, help us to find answer for this one
A competitive market is a market that has _____, so _____ can influence the price.
Answer
Correct Answer:
Many buyers and sellers; no single buyer or seller
Note: This Question is unanswered, help us to find answer for this one
Over time, potential gdp ________, which is shown by the ________ curve shifting to the right.
Note: This Question is unanswered, help us to find answer for this one
U.s. potential gdp is the value of the goods and services produced in the united states _______.
Answer
Correct Answer:
When the U.S. economy is at full employment
Note: This Question is unanswered, help us to find answer for this one
Supply-side economics is based on the theory that if taxes are reduced, _____.
Answer
Correct Answer:
People will work more and have more to spend, causing economic growth
Note: This Question is unanswered, help us to find answer for this one
Every day, we make many choices. we can't avoid having to make choices because _______.
Answer
Correct Answer:
Our wants exceed the resources available to satisfy them.
Note: This Question is unanswered, help us to find answer for this one
Because of monopoly, consumers experience ________ than with perfect competition.
Answer
Correct Answer:
Higher prices
Note: This Question is unanswered, help us to find answer for this one
Management by ________ is the practice that directs executive attention to large budget variances.
Answer
Correct Answer:
Exception
Note: This Question is unanswered, help us to find answer for this one
Exchange rates, interest rates, and inflation are all considered part of the _________ environment.
Answer
Correct Answer:
Economic
Note: This Question is unanswered, help us to find answer for this one
When unskilled teens earn less than college graduates, society answers the ________ question.
Answer
Correct Answer:
For whom
Note: This Question is unanswered, help us to find answer for this one
When the economy goes into a recession, real gdp ________, and unemployment ________.
Answer
Correct Answer:
Falls, rises
Note: This Question is unanswered, help us to find answer for this one
The vertical intercept of the consumption function equals ______ and the slope equals _____.
Answer
Correct Answer:
Autonomous consumption; the mpc
Note: This Question is unanswered, help us to find answer for this one
The 45-degree line in the keynesian model represents a set of points where _____ equals _____.
Answer
Correct Answer:
Disposable income; consumption
Note: This Question is unanswered, help us to find answer for this one
Physical capital is _______. financial capital is _______.
Answer
Correct Answer:
The tools, instruments, machines, buildings, and other items that have been produced in the past and that are used today to produce goods and services; the funds that firms use to buy physical capital
Note: This Question is unanswered, help us to find answer for this one
If mpc is 0.8, then the multiplier is _____.
Answer
Correct Answer:
5
Note: This Question is unanswered, help us to find answer for this one
Economists include the word final in the definition of gdp because we ____________.
Answer
Correct Answer:
A and B only.
Note: This Question is unanswered, help us to find answer for this one
A downward-moving gdp indicates that ________.
Answer
Correct Answer:
Fewer goods and services are being produced and sold
Note: This Question is unanswered, help us to find answer for this one
A rise in the price level produces a ________ the potential gdp line.
Answer
Correct Answer:
A movement upward along
Note: This Question is unanswered, help us to find answer for this one
A rise in mpc makes the total expenditures (te) curve __________ and __________ the multiplier.
Answer
Correct Answer:
Steeper; raises.
Note: This Question is unanswered, help us to find answer for this one
Improvements in _____ technology have helped make globalization possible.
Answer
Correct Answer:
Communication
Note: This Question is unanswered, help us to find answer for this one
All other things being equal, when the demand for money decreases _____
Answer
Correct Answer:
Interest rates decrease.
Note: This Question is unanswered, help us to find answer for this one
A nations nominal gross domestic product (gdp) _____.
Answer
Correct Answer:
Is the dollar value of all final output produced within the borders of the nation during a specific period of time
Note: This Question is unanswered, help us to find answer for this one
Compared to personal computers, cell phones _____.
Answer
Correct Answer:
Come with an extended battery life
Note: This Question is unanswered, help us to find answer for this one
The fed's policy tools include all the following except _______.
Answer
Correct Answer:
Taxing banks' deposits at the Fed
Note: This Question is unanswered, help us to find answer for this one
In the circular flow model, governments _______.
Answer
Correct Answer:
Goods and services
Note: This Question is unanswered, help us to find answer for this one
The aggregate demand curve shows the _____.
Answer
Correct Answer:
Inverse relationship between the price level and the quantity of real GDP purchased
Note: This Question is unanswered, help us to find answer for this one
Refer to figure 2-1. ________ is (are) inefficient in that not all resources are being used.
Answer
Correct Answer:
Point A
Note: This Question is unanswered, help us to find answer for this one
When the economy is at full employment, _____ is zero.
Answer
Correct Answer:
Cyclical unemployment
Note: This Question is unanswered, help us to find answer for this one
To create a macro, you can enter a series of commands in the _____ programming language.
Answer
Correct Answer:
VBA
Note: This Question is unanswered, help us to find answer for this one
Unexpectedly high inflation ______ borrowers and ______ lenders.
Answer
Correct Answer:
Helps; hurts
Note: This Question is unanswered, help us to find answer for this one
When the labor market is in equilibrium, real gdp ________ potential gdp.
Answer
Correct Answer:
Is equal to
Note: This Question is unanswered, help us to find answer for this one
Increasing opportunity cost is represented by a ________ production possibilities frontier.
Answer
Correct Answer:
Bowed out
Note: This Question is unanswered, help us to find answer for this one
An increase in gdp per capita most likely means that _____.
Answer
Correct Answer:
Output is increasing
Note: This Question is unanswered, help us to find answer for this one
When the price level decreases, _____.
Answer
Correct Answer:
The demand for money falls and the interest rate falls
Note: This Question is unanswered, help us to find answer for this one
When investment increases, the ________ in aggregate demand ________ the change in investment.
Answer
Correct Answer:
Increase, increases
Note: This Question is unanswered, help us to find answer for this one
The real wage rate definitely falls if the money wage rate ________ and the price level ________.
Answer
Correct Answer:
Remains constant; rises
Note: This Question is unanswered, help us to find answer for this one
The labels for the axes of an aggregate supply curve should be _____.
Answer
Correct Answer:
Real domestic output on the horizontal axis and the price level on the vertical axis.
Note: This Question is unanswered, help us to find answer for this one
Tax cuts on business income ________ aggregate demand.
Answer
Correct Answer:
Would increase
Note: This Question is unanswered, help us to find answer for this one
M1 is comprised of currency held outside banks + traveler's checks + __________.
Answer
Correct Answer:
Transaction account (checking and debit account) deposits
Note: This Question is unanswered, help us to find answer for this one
If the gdp deflator is less than 100, then for that year nominal gdp ________ real gdp.
Answer
Correct Answer:
Is less than
Note: This Question is unanswered, help us to find answer for this one
If prices fall, then real wealth __________ and the quantity of aggregate demand __________.
Answer
Correct Answer:
Increases; increases
Note: This Question is unanswered, help us to find answer for this one
Aggregate demand ________ and shifts the ad curve ________ when ________.
Note: This Question is unanswered, help us to find answer for this one
Optimization is the process that describes __________.
Answer
Correct Answer:
The choices that businesses make.
Note: This Question is unanswered, help us to find answer for this one
The rate of unemployment that occurs when the economy is producing its potential gdp _____.
Answer
Correct Answer:
Natural rate of Unemployment
Note: This Question is unanswered, help us to find answer for this one
Tax revenues _____ during a recession. needs-tested spending ________ during an expansion.
Answer
Correct Answer:
Increase; increase
Note: This Question is unanswered, help us to find answer for this one
Most inflation episodes are caused by _____.
Answer
Correct Answer:
Increases in aggregate spending
Note: This Question is unanswered, help us to find answer for this one
Most hyperinflations end with _____ reforms that eliminate the need for _____.
Answer
Correct Answer:
Fiscal; seigniorage
Note: This Question is unanswered, help us to find answer for this one
Labor productivity will increase if the ________ increases and ________.
Answer
Correct Answer:
Quantity of capital per hour worked; technology improves
Note: This Question is unanswered, help us to find answer for this one
Inflation results in _____.
Answer
Correct Answer:
A decline in the purchasing power of money
Note: This Question is unanswered, help us to find answer for this one
In the diagram, the economy's short-run as curve is line ___ and its long-run as curve is line ___.
Answer
Correct Answer:
2; 1
Note: This Question is unanswered, help us to find answer for this one
In free and competitive markets, shortages always lead to _______
Answer
Correct Answer:
Higher prices
Note: This Question is unanswered, help us to find answer for this one
In an ad/asad/as diagram, __________________________ could explain a rise in cyclical unemployment?
Answer
Correct Answer:
A shift to the left in either AS or AD
Note: This Question is unanswered, help us to find answer for this one
In a perfectly competitive industry, a long-run equilibrium occurs ________.
Answer
Correct Answer:
When each firm is making zero economic profit and no firm has an incentive to enter the industry
Note: This Question is unanswered, help us to find answer for this one
If you borrowed $5,000 for four years, that would be a _________________.
Answer
Correct Answer:
Long-term loan
Note: This Question is unanswered, help us to find answer for this one
During a period of _____, real gdp per capita can increase.
Answer
Correct Answer:
Economic growth
Note: This Question is unanswered, help us to find answer for this one
Consumption spending refers to ________ spending on goods and services.
Answer
Correct Answer:
Household
Note: This Question is unanswered, help us to find answer for this one
Which of the following refers to economic indicators that economists at the Department of Commerce have found typically change before changes in economic activity?
Answer
Correct Answer:
Leading
Note: This Question is unanswered, help us to find answer for this one
How many different phases does the business cycle have?
Answer
Correct Answer:
Four
Note: This Question is unanswered, help us to find answer for this one
What type of bias occurs when the consumer price index fails to reflect the savings that households enjoy when they change their spending in response to relative price changes?
Answer
Correct Answer:
Substitution
Note: This Question is unanswered, help us to find answer for this one
Which of the following is a price index based on?
Answer
Correct Answer:
A bundle of representative goods and services
Note: This Question is unanswered, help us to find answer for this one
The price of a specific good compared to the price of other goods is known as ______.
Answer
Correct Answer:
Relative price
Note: This Question is unanswered, help us to find answer for this one
How has automation affected highly skilled workers?
Answer
Correct Answer:
It has increased their overall wages.
Note: This Question is unanswered, help us to find answer for this one
Which of the following best describes the purpose of unemployment insurance?
Answer
Correct Answer:
To reduce economic hardship and the severity of recessions
Note: This Question is unanswered, help us to find answer for this one
In which of the following environments is the efficiency wage most likely to be effective?
Answer
Correct Answer:
Manufacturing
Note: This Question is unanswered, help us to find answer for this one
The amount of real output the economy would produce if its labor and other resources were fully employed is known as ______.
Answer
Correct Answer:
Potential output
Note: This Question is unanswered, help us to find answer for this one
Which of the following types of unemployment is used to calculate the natural rate of unemployment?
Answer
Correct Answer:
Structural
Note: This Question is unanswered, help us to find answer for this one
Which type of unemployment results from the persistent mismatch of the skills of workers and the requirements of jobs?
Answer
Correct Answer:
Structural
Note: This Question is unanswered, help us to find answer for this one
Which of the following groups typically has a high rate of unemployment?
Answer
Correct Answer:
Teenagers
Note: This Question is unanswered, help us to find answer for this one
Why is the unemployment rate an imperfect measure of unemployment?
Answer
Correct Answer:
It does not take into account discouraged workers.
Note: This Question is unanswered, help us to find answer for this one
Which of the following refers to the percentage of the population age 16 and older who are willing and able to work but are unable to obtain a job?
Answer
Correct Answer:
Unemployment rate
Note: This Question is unanswered, help us to find answer for this one
What is meant by real in the term real gross domestic product?
Answer
Correct Answer:
Adjusted for inflation
Note: This Question is unanswered, help us to find answer for this one
Unemployment is the percentage of the population age ____ and older who are willing and able to work but are unable to obtain a job
Answer
Correct Answer:
16
Note: This Question is unanswered, help us to find answer for this one
Under employment is a situation in which a worker’s skill level is higher than necessary for a job
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
____ is the point in time when output stops declining, that is, when business activity is at its lowest point in the cycle
Answer
Correct Answer:
Trough
Note: This Question is unanswered, help us to find answer for this one
The unemployment that results from the persistent mismatch of the skills of workers and the requirements of jobs is ____ employment
Answer
Correct Answer:
Structural
Note: This Question is unanswered, help us to find answer for this one
The time and inconvenience cost incurred when individuals reduce their money holdings because of inflation is known as shoe leather cost
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The price of a specific good compared to the price of other goods is called
Answer
Correct Answer:
Relative price
Note: This Question is unanswered, help us to find answer for this one
An individual who worked before and is now reentering the labor force is called
Answer
Correct Answer:
Reentrant
Note: This Question is unanswered, help us to find answer for this one
A period of significant decline in output and employment is called
Answer
Correct Answer:
Recession
Note: This Question is unanswered, help us to find answer for this one
The total value of all final goods and services produced in a given period, such as a year or a quarter, adjusted for inflation is real gross domestic product
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
Producer price index is a measure of the cost of goods and services bought by firms
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The ____ level of prices in the economy is price level
Answer
Correct Answer:
Average
Note: This Question is unanswered, help us to find answer for this one
A measure of the trend in prices paid for a certain bundle of goods and services over a given period is called
Answer
Correct Answer:
Price index
Note: This Question is unanswered, help us to find answer for this one
The amount of real output the economy would produce if its labor and other resources were fully employed, that is, at the natural rate of unemployment is called potential output
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The point in time when expansion comes to an end, that is, when output is at the highest point in the cycle is called
Answer
Correct Answer:
Peak
Note: This Question is unanswered, help us to find answer for this one
The reported interest rate that is not adjusted for inflation is called nominal interest rate
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
An individual who has not held a job before but is now seeking employment is ___ entrant
Answer
Correct Answer:
New
Note: This Question is unanswered, help us to find answer for this one
The median, or “typical,” unemployment rate, equal to the sum of frictional and structural unemployment when they are at a maximum is natural rate of unemployment
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
An hourly wage floor set above the equilibrium wage is minimum wage rate
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The costs imposed on a firm from changing listed prices is called
Answer
Correct Answer:
Menu costs
Note: This Question is unanswered, help us to find answer for this one
Leading economic indicators are factors that economists at the Department of Commerce have found typically change before changes in economic activity
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The percentage of the working-age population in the labor force is called labour force participation rate
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The number of people age ___ and over who are available for employment is labour force
Answer
Correct Answer:
16
Note: This Question is unanswered, help us to find answer for this one
An individual who has been temporarily laid off or fired is job loser
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
A person who quits his or her job is job leaver
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
The percentage change in the price level from one year to the next is called inflation rate
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
Extremely high rates of inflation for sustained periods of time is called
Answer
Correct Answer:
Hyperinflation
Note: This Question is unanswered, help us to find answer for this one
GDP deflator is a price index that helps measure the ____ price level of all final consumer goods and services produced
Answer
Correct Answer:
Average
Note: This Question is unanswered, help us to find answer for this one
The unemployment that results from workers searching for suitable jobs and firms looking for suitable workers is frictional unemployment
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
When output (real GDP) is rising significantly—the period between the trough of a recession and the next peak is called
Answer
Correct Answer:
Expansion
Note: This Question is unanswered, help us to find answer for this one
Efficiency wage model is theory stating that ____ wages lead to greater productivity
Answer
Correct Answer:
Higher
Note: This Question is unanswered, help us to find answer for this one
An individual who has left the labor force because he or she could not find a job is known as
Answer
Correct Answer:
Discouraged worker
Note: This Question is unanswered, help us to find answer for this one
A severe recession or contraction in output is called
Answer
Correct Answer:
Depression
Note: This Question is unanswered, help us to find answer for this one
A decrease in the overall price level, which increases the purchasing power of money is called
Answer
Correct Answer:
Deflation
Note: This Question is unanswered, help us to find answer for this one
Unemployment due to short-term cyclical fluctuations in the economy is cyclical unemployment
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
When the economy is slowing down—measured from the peak to the trough is called
Answer
Correct Answer:
Contraction
Note: This Question is unanswered, help us to find answer for this one
A measure of the cost of a market basket that represents the consumption of a typical household is called consumer price index
Answer
Correct Answer:
True
Note: This Question is unanswered, help us to find answer for this one
Short-term fluctuations in the economy relative to the long-term trend in output is called
Answer
Correct Answer:
Business cycles
Note: This Question is unanswered, help us to find answer for this one
A period of ____ economic expansion
Answer
Correct Answer:
Prolonged
Note: This Question is unanswered, help us to find answer for this one
