Term
| If the market interest rate is 8% and the inflation rate is 3%, then the real interest rate equals: |
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Definition
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Term
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Definition
| adding up of individual economic variables to obtain economy wide totals. |
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Term
| Bob's Barber Shop cut 3,000 heads of hair in the year 2005 and 3,100 in the year 2006. The price of a hair cut was $7 in 2005 and $8 in 2006. If the year 2005 is the base year, what was Bob's contribution to real GDP in the year 2006? |
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Definition
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Term
| Which of the following would be included in the GDP of the United States? |
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Definition
| Boeing builds a plane in Seattle that is sold to Air Canada. |
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Term
| Indexing is the process of: |
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Definition
| increasing a nominal quantity by an amount equal to the percentage change in a price index. |
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Term
| Which of the following is primarily a macroeconomic policy? |
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Definition
| Increases in interest rates by the Federal Reserve. |
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Term
| The CPI in 1975 equaled 0.54. The CPI in 1976 equaled 0.57. The rate of inflation between 1975 and 1976 was ____ percent. |
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Definition
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Term
| Decisions to determine the government's budget are called: |
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Definition
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Term
| Extremely high rates of inflation are called _____. |
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Definition
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Term
A consumer expenditure survey reports the following information on consumer protein spending:
Using 2005 as the base year, by how much does a "cost of protein" index increase between 2005 and 2006 |
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Definition
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Term
| The field of macroeconomics developed when economists looked for causes of: |
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Definition
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Term
A decision by a government to sell businesses that currently are operated by the government to private investors is an example of
________ macroeconomic policy. |
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Definition
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Term
Changes in the average price level are called _____, while changes in the price of a specific good in comparison with other goods
and services are called _______. |
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Definition
| inflation; changes in a relative price. |
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Term
When statisticians fail to take into account improvements in the quality of goods and services, the CPI will tend to ______ the rate
of inflation. |
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Definition
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Term
| Who among the following is considered to be in the labor force? |
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Definition
| An unemployed woman who looked for a job in the previous four weeks. |
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Term
_______ analysis addresses the question of whether a policy should be used, while ______ analysis addresses the economic
consequences of a particular policy. |
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Definition
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Term
| The Fisher effect is the tendency for ____ interest rates to be ______ when inflation is high. |
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Definition
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Term
An economy produces 500,000 tables valued at $100 each. Households purchase 100,000 tables of which 50,000 are imported.
Businesses purchase 200,000 domestically produced tables. The government purchases 100,000 domestically produced tables and
50,000 domestically produced tables are sold abroad. The unsold tables at the end of the year are held in inventory by the table
manufacturers. What is value of GDP? |
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Definition
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Term
| Which of the following would increase the government purchases component of U.S. GDP? |
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Definition
| The U.S. federal government pays $3 billion in salaries to soldiers in the military. |
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Term
Jim Brown would like to work, but has not looked for work in the past four weeks because he does not believe any jobs are
available. In the official employment statistics, Jim is classified as: |
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Definition
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Term
Suppose a jar of DeLux popcorn that is ultimately sold to a customer at Friendly Groceries is produced by the following
production process:
What is the value added of Fulton Family Farm? |
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Definition
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Term
| Goods and services that are used up in the production of other goods and services are called _____ goods and services. |
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Definition
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Term
| Based on the following information, what is the unemployment rate? |
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Definition
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Term
| Inflation reduces economic efficiency through all of the following channels EXCEPT by: |
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Definition
| Changing relative prices. |
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Term
| If two countries are identical except that there is significant air and water pollution in one, then the level of measured GDP: |
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Definition
| will be the same in both countries. |
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Term
A college graduate in 1972 found a job paying $7,200. The CPI was 0.418 in 1972. A college graduate in 2005 found a job paying
$30,000. The CPI was 1.68 in 2005. The 1972 graduate's job paid ____ in nominal terms and ______ in real terms than the 2005
graduate's job. |
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Definition
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Term
| A person 16 years or older who does not work, but is actively looking for work is officially classified as: |
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Definition
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Term
| The Consumer Price Index measures the cost of: |
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Definition
| a fixed basket of goods and services. |
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Term
| The real interest rate equals the: |
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Definition
| nominal interest rate minus the inflation rate. |
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Term
| Which of the following would increase the investment component of U.S. GDP? |
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Definition
| A laundry in Seattle purchases a new clothes-washing machine produced in the U.S. |
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