macro eco t2

inflation occurs when the government prints too much money

true

price indexes are biased by changes in the quality of goods

true

purchases of stocks are counted in GDP

false

GDP includes an adjustment for pollution created during production

false

the people in each country in the world started out poor

true

a larger government implies higher economic growth

false

among the winners with unexpected inflation are real asset holders

true

discouraged workers are those in dead-end repetitive jobs

false

in the steady state consumption grows in every period

false

structural unemployed is due to people changing jobs and can not be reduced

true

unemployed people looking for a job count in the labor force

true

to encourage long-run economic growth the government can protect intellectual property rights

true

the unemployment that can be reduced by a better economy is cyclical unemployment

true

economies may not converge due to different fertility rates

true

honest government hinders the growth of GDP

false

using the data in fig.1, the unemployment rate in 2020 is

8%

using the data in figure 1, the labor force participation rate is

50%

using the data in fig.1, the labor force was

100 M

using the data in fig.1, real GDP in 2020 in terms of 2010 prices is

$600 billion

using the data in fig.1, if there are two goods ham and cheese in 2019, GDP was

$6000

in fig 2:

depreciation=investment at the optimum or steady state

in fig 2, technology A increases , then:

the production function, F(A, eL,) shifts up

in fig 2, the steady state capital stock is

K2

in fig 2, the steady state output is

goods 3

in fig 2, if capital were K1, we would expect the capital stock to

increase

in fig3, a peak is

point L

in fig 3, a recession is

points L to M

in fig 3, an expansion is

points M to N

in fig 3, from L to M we would expect

cyclical unemployment to increase

to encourage long-run economic growth, the government can

all the above- issue and enforce patents, protect copy rights, subsidize research and development

the quantity equation says that if money growth increases, inflation falls

false

GDP includes an adjustment for pollution created during production

False

GDP is the dollar or market value of all the goods and services produced in an area during a particular time period

true

the total value of a purchase of a used car is counted in GDP

false

unemployed people looking for a job count in the labor force

true

frictional unemployment is due changes in the economy like goods being replaces by better goods

false

higher unemployment compensation leads to more frictional unemployment

true

among the winners with unexpected inflation are people on fixed incomes like a retiree with a private pension

false

when someone lends money, they are not really gaining interest until they have been compensates for inflation during the time of the loan

true

inflation is the rate of change in the price level

true

a fair and dependable court system leads to higher economic growth

true

the people of some countries started out richer than others

false

to encourage long-run economic growth per capita a society must increase its population

false

in the steady state production or GDP stays the same every period

true

economies may not converge due to differences in saving rates

true

the labor force is

100 M

the unemployment rate in 2021 is

4%

the labor force participation rate is

67%

real GDP in 2021 in terms of 2021 prices is

$16 T

if there are two goods ham and cheese, 2019 GDP was

$5500

in fig 2,

GDP or goods is variable

technology A increases, then

the production function shifts up

the steady state capital is

K3

the steady state output per worker is

Y4

if capital were K4 we would expect K to

decrease

a trough or local max. is

U(trough) or V(LM)

a recession is

points T to U

an expansion is

points U to V

from Point T to point U we would expect

cyclical unemployment to increase

institutions that encourage economic growth include

political instability and property rights, all the above