Macroeconomics - Assignment Essays

question

When economists use market values to aggregate output, they sum the:

answer

price times the quantity of each item produced.

question

The most commonly used measure of an economy's output is:

answer

GDP

question

The four components of aggregate expenditures are:

answer

consumption, investment, government spending, and net exports.

question

Three equivalent ways to measure GDP are total ___, total ____, and total ____.

answer

production; income; expenditure

question

unemployment

answer

without a job, searching for a job

question

GDP

answer

value of stuff produced

question

Inflation

answer

general increase in price

question

long-run economic growth

answer

long-run growth is about building the capacity of the economy, in other words the PPC shifting out

question

aggregate

answer

collected together total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

question

Macro

answer

study of economy wide phenomena (aggregate), including inflation, unemployment, and economic growth.

question

short run fluctuation: recessions

answer

periods with low demand for goods and services that cause the economy to produce at levels below capacity. Or in other words it is when the economy is operating within the PPC.

question

GDP market values

answer

of final goods and services produced within a country during a given period and sold on organized markets.

question

The Consumer Price Index measures the cost of:

answer

all goods and services purchased by consumers

question

CPI

answer

measure of the cost of living, or how many dollars (nominal amount) one would need to by the same amount of goods and services (real amounts). It is determined by measuring the cost of a fixed based of goods and services.

question

The introduction of new technology that increases the productivity of labor will

answer

increase the demand for labor

question

In the market for the labor, the price of labor is the:

answer

real wage

question

Minimum wage laws contribute to structural unemployment by:

answer

keeping wages above the market-clearing level

question

the labor force equals the number of people

answer

both employed and unemployed

question

market value of production=

answer

total expenditure=total income

question

GDP by market value of production

answer

the market values of final goods and services produced within a country during a given period and sold on organized markets

question

total expenditures=

answer

firms investments + household consumption + govt + net exports of the world

question

capital goods

answer

goods that increase productive capacity

question

residential housing

answer

structures meant for personal residences

question

Change in inventories

answer

difference in stock of goods meant for sale

question

nominal amount

answer

a quantity measured in dollars

question

real amount

answer

a quantity measured in physical terms

question

labor income

answer

comprises wages, salaries, and the income of the self employed

question

capital income

answer

payments to owners of physical capital such as factories, machines, and office buildings and intangible capital such as copyrights and patents. the components of capital income include items such as profits earned by business owners, the rent paid to owners of land or buildings, interest received by bondholders. and the royalties received by the holders of copyrights or patents. (profits of the firm)

question

production

answer

=market value of final goods and services

question

expenditure

answer

= consumption investment gvt purchases net exports

question

income

answer

=labor income and capital income

question

shoe leather costs

answer

efers to the cost of time and effort (more specifically the opportunity cost of time and energy) that people spend trying to counter-act the effects of inflation, such as holding less cash and having to make additional trips to the bank.

question

cyclically unemployed

answer

willing and able to work, have the right skills, no demand/recessions

question

frictionally unemployed

answer

the time it takes to search typically sort term with low costs fire quits labor force entrants new college entrants

question

structural unemployed

answer

mismatch bw workers and jobs when economy is at capacity lack of basic skills travel agents legal and structural barriers something the govt is doing mismatched of adv skills

question

full employment

answer

can never get rid of frictional employment all possible workers are employed not possible for there to be no employment

question

3 impediments

answer

minimum wages, unions, unemployment insurance

question

addressing structural employment

answer

retraining government training program corporate initiatives to hire those with less skills geographic mobility countries moving subsitidys

question

why would we raise min wage

answer

puts more money in economy increase standard of living lowers PROS

question

CONS of raising min wage

answer

lowers employment would hurt small business consumers would be hurt- inflation poorly targeted (Teens)

question

demand min wage

answer

firms demand les labor with higher wages increase costs so firms produce less higher wages we substitute labor for capital supply coming from households more are willing to work at higher wages

question

unemployment decreasing

answer

good: employment pop ratio increasing
bad: labor force participation rate decreasing

question

unemployment increases

answer

good: labor force participation rate increase
bad: employment population ratio decreasing

question

The excess of government spending over tax collections is:

answer

government budget deficit

question

When the government runs a budget deficit, it makes up the difference by:

answer

issuing bonds

question

A measure defined at a point in time is called a(n) ____________ variable

answer

stock

question

investment is a(n)_______ that changes the ___________ of capital

answer

flow, stock

question

minimum wage

answer

minimum wage is the lowest legal wage

question

unions

answer

collectively bargain for above marketing clearing wages negotiate for better working conditions threaten strikes

question

unemployment insurance

answer

higher reservation wage A source of income for workers who have lost their jobs through no fault of their own. Workers who quit or are fired are generally not eligible for unemployment insurance.

1 of 50

question

When economists use market values to aggregate output, they sum the:

answer

price times the quantity of each item produced.

question

The most commonly used measure of an economy's output is:

answer

GDP

question

The four components of aggregate expenditures are:

answer

consumption, investment, government spending, and net exports.

question

Three equivalent ways to measure GDP are total ___, total ____, and total ____.

answer

production; income; expenditure

question

unemployment

answer

without a job, searching for a job

question

GDP

answer

value of stuff produced

question

Inflation

answer

general increase in price

question

long-run economic growth

answer

long-run growth is about building the capacity of the economy, in other words the PPC shifting out

question

aggregate

answer

collected together total amount of goods and services demanded in the economy at a given overall price level and in a given time period.

question

Macro

answer

study of economy wide phenomena (aggregate), including inflation, unemployment, and economic growth.

question

short run fluctuation: recessions

answer

periods with low demand for goods and services that cause the economy to produce at levels below capacity. Or in other words it is when the economy is operating within the PPC.

question

GDP market values

answer

of final goods and services produced within a country during a given period and sold on organized markets.

question

The Consumer Price Index measures the cost of:

answer

all goods and services purchased by consumers

question

CPI

answer

question

The introduction of new technology that increases the productivity of labor will

answer

increase the demand for labor

question

In the market for the labor, the price of labor is the:

answer

real wage

question

Minimum wage laws contribute to structural unemployment by:

answer

keeping wages above the market-clearing level

question

the labor force equals the number of people

answer

both employed and unemployed

question

market value of production=

answer

total expenditure=total income

question

GDP by market value of production

answer

the market values of final goods and services produced within a country during a given period and sold on organized markets

question

total expenditures=

answer

firms investments + household consumption + govt + net exports of the world

question

capital goods

answer

goods that increase productive capacity

question

residential housing

answer

structures meant for personal residences

question

Change in inventories

answer

difference in stock of goods meant for sale

question

nominal amount

answer

a quantity measured in dollars

question

real amount

answer

a quantity measured in physical terms

question

labor income

answer

comprises wages, salaries, and the income of the self employed

question

capital income

answer

question

production

answer

=market value of final goods and services

question

expenditure

answer

= consumption investment gvt purchases net exports

question

income

answer

=labor income and capital income

question

shoe leather costs

answer

question

cyclically unemployed

answer

willing and able to work, have the right skills, no demand/recessions

question

frictionally unemployed

answer

the time it takes to search typically sort term with low costs fire quits labor force entrants new college entrants

question

structural unemployed

answer

mismatch bw workers and jobs when economy is at capacity lack of basic skills travel agents legal and structural barriers something the govt is doing mismatched of adv skills

question

full employment

answer

can never get rid of frictional employment all possible workers are employed not possible for there to be no employment

question

3 impediments

answer

minimum wages, unions, unemployment insurance

question

addressing structural employment

answer

retraining government training program corporate initiatives to hire those with less skills geographic mobility countries moving subsitidys

question

why would we raise min wage

answer

puts more money in economy increase standard of living lowers PROS

question

CONS of raising min wage

answer

lowers employment would hurt small business consumers would be hurt- inflation poorly targeted (Teens)

question

demand min wage

answer

firms demand les labor with higher wages increase costs so firms produce less higher wages we substitute labor for capital supply coming from households more are willing to work at higher wages

question

unemployment decreasing

answer

good: employment pop ratio increasing
bad: labor force participation rate decreasing

question

unemployment increases

answer

good: labor force participation rate increase
bad: employment population ratio decreasing

question

The excess of government spending over tax collections is:

answer

government budget deficit

question

When the government runs a budget deficit, it makes up the difference by:

answer

issuing bonds

question

A measure defined at a point in time is called a(n) ____________ variable

answer

stock

question

investment is a(n)_______ that changes the ___________ of capital

answer

flow, stock

question

minimum wage

answer

minimum wage is the lowest legal wage

question

unions

answer

collectively bargain for above marketing clearing wages negotiate for better working conditions threaten strikes

question

unemployment insurance

answer

higher reservation wage A source of income for workers who have lost their jobs through no fault of their own. Workers who quit or are fired are generally not eligible for unemployment insurance.

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