Macro 1

Which phase of the business cycle is marked by inflation?

• expansion
• peak
• contraction
• trough

The systematic ups and downs of the economy are best demonstrated by looking at the ___________________.

• rate of inflation
• business cycle
• unemployment rate
• tax schedule

The lowest point in the business cycle also is marked by prices at their lowest as well as unemployment at it's highest

• Peak
• Trough
• Expansion
• Contraction

What causes demand pull inflation?

• rise in price due to a decrease in supply
• a rise in price level due to an increase in consumption
• a rise in price due to an increase in the cost of production
• a decrease in price due to a decrease in supply

Which type of unemployment occurs during a recession or you were recently laid off due to tough financial times in your community?

• structural
• frictional
• cyclical
• seasonal

When GDP is adjusted for changes in the cost of living, so more accurate year to year price comparisons can made, it is referred to as:

• Aggregate Supply

• Nominal GDP

• Aggregate Demand

• Real GDP

The formula for GDP is

• C+X+G+(Y-M)

• C-I-G-(XN)

• C+I+G+(X-M)

• I+G-Xn-(X-I)

When the economy is working properly, what is the natural (full employment) unemployment rate?

• 0 to 3 percent

• 4 to 6 percent

• 8 to 10 percent

• 10 - 12 percent

What is GDP per capita?

• GDP divided by the value of capital inputs

• GDP divided by the population

• GDP divided by the number of workers

• GDP divided by the number of weeks in the year

Unemployment occurs when

• Someone wants a job but can't find work

• Someone is able and willing to work but can't find a job

• Someone is able to work but does not have employment

• Work provided is not sufficient to meet the needs of workers