Review Questions Exam 2- Macro-Econ

studied byStudied by 0 people
0.0(0)
learn
LearnA personalized and smart learning plan
exam
Practice TestTake a test on your terms and definitions
spaced repetition
Spaced RepetitionScientifically backed study method
heart puzzle
Matching GameHow quick can you match all your cards?
flashcards
FlashcardsStudy terms and definitions

1 / 23

flashcard set

Earn XP

Description and Tags

24 Terms

1

A macroeconomist would concentrate on

the unemployment rate in Germany

New cards
2


Gross Domestic Product is calculated by adding together


money value of final goods and services.

New cards
3

Suppose that in 2011 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000. The amount this transaction would add to the GDP in 2011 is

$0

New cards
4

According to economists, one of the signs of an unhealthy economy is a

declining real GDP.

New cards
5


If the labor force grows faster than the number employed, the

unemployment rate will rise

New cards
6


Inflation often bestows unearned income on

homeowners

New cards
7

A productivity decrease would be illustrated bya shift in the production function

downward

New cards
8

The difference between disposable income and consumption spending is

personal saving

New cards
9


The numerical value of the MPC is typically

less than 1

New cards
10


An increase in the U.S. price level will

Shift the expenditure schedule downward

New cards
11

Using the standard 45-degree line diagram, how does a decrease in net exports effect the expenditure schedule?

It shifts the expenditure schedule downward

New cards
12

When the expenditure schedule is too high, the result is an

inflationary gap

New cards
13


The only factor that can cause movement along the aggregate supply curve is the

price level

New cards
14

What is the main difference between microeconomics and macroeconomics?

  • Microeconomics focuses on individual markets and decisions, while macroeconomics examines the economy as a whole, including issues like GDP, inflation, and unemployment.

New cards
15

Define aggregation in the context of macroeconomics.

Aggregation is the process of combining individual economic factors into a single, comprehensive measure, such as GDP.

New cards
16

How do simple supply and demand interactions affect the macro economy?

Supply and demand influence price levels and resource allocation across the economy, impacting inflation and overall economic stability.

New cards
17

What are some key concerns of macroeconomists?

Unemployment, inflation, economic growth, and stability are primary concerns.

New cards
18

What is GDP, and what are its primary uses?

Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country. It's used to gauge economic performance and compare economic health between countries.

New cards
19

What are the main goals of macroeconomic policy?

Achieving economic growth, low unemployment, and stable prices.

New cards
20

Explain the difference between actual and potential GDP.

Actual GDP is the current output level of the economy, while potential GDP represents the maximum possible output without causing inflation.

New cards
21

What is the production function?

The production function shows the relationship between inputs (like labor and capital) and the output they produce.

New cards
22

How is unemployment measured?

Unemployment is typically measured by the unemployment rate, which is the percentage of the labor force actively seeking work but unable to find it.

New cards
23

What is inflation, and how do you calculate the inflation rate?

Inflation is the rate at which prices increase over time. The inflation rate can be calculated as: Inflation Rate=CPIold​CPInew​

CPIold​​

×100

New cards
24

Explain the difference between real and nominal values.

Real values are adjusted for inflation, reflecting purchasing power, while nominal values are unadjusted and reflect current market prices.

New cards

Explore top notes

note Note
studied byStudied by 18 people
899 days ago
5.0(1)
note Note
studied byStudied by 32 people
794 days ago
5.0(1)
note Note
studied byStudied by 1 person
28 days ago
5.0(1)
note Note
studied byStudied by 103 people
856 days ago
5.0(1)
note Note
studied byStudied by 3 people
761 days ago
5.0(1)
note Note
studied byStudied by 10 people
693 days ago
4.5(2)
note Note
studied byStudied by 39 people
953 days ago
5.0(1)
note Note
studied byStudied by 11 people
776 days ago
5.0(1)

Explore top flashcards

flashcards Flashcard (33)
studied byStudied by 3 people
792 days ago
5.0(1)
flashcards Flashcard (62)
studied byStudied by 5 people
765 days ago
5.0(1)
flashcards Flashcard (82)
studied byStudied by 10 people
56 days ago
5.0(1)
flashcards Flashcard (40)
studied byStudied by 5 people
171 days ago
5.0(1)
flashcards Flashcard (20)
studied byStudied by 115 people
507 days ago
5.0(1)
flashcards Flashcard (25)
studied byStudied by 12 people
468 days ago
5.0(1)
flashcards Flashcard (25)
studied byStudied by 2 people
661 days ago
5.0(1)
flashcards Flashcard (38)
studied byStudied by 38 people
8 days ago
5.0(1)
robot