Macro is worse than aids.....and thats saying a lot

Depravity

AHE calculation

Add all wages and salaries workers are paid

Divide by total number of hours worked

Governments can help reduce structural unemployment by implementing policies that aid

worker retraining.

Governments can help reduce the level of frictional unemployment with policies that speed up the process of matching unemployed workers with

unfilled jobs.

Unemployment rate:

4%

6.8 million people unemployed

Nonfarm payroll increases:

143,000

Labor force participation rate:

62.6%

Employment population rate:

60.1%

Real GDP increased by how much in 2024?

2.8 percent

 The increase in real GDP in 2024 reflected

increases in consumer spending, investment, government spending, and exports. Imports increased.

Personal income

national income minus retained corporate earnings plus government transfer payments and interest on government bonds.

National income is

GDP minus depreciation.

The largest component of gross domestic income is

Wages

Business fixed investment

new factories, office buildings,

machinery, and research and development.

Residential investment

i.e. new single-family and multi-unit houses.

Changes in business inventories

i.e. goods that have been produced but

not yet sold

An important conclusion to draw from the​ circular-flow diagram is that

we can measure GDP by calculating the total value of expenditures on final goods and​ services, or we can measure GDP by calculating the value of total income

In the​ circular-flow diagram, who supplies factors of production in exchange for​ income?

Households

In calculating​ GDP, which levels of government spending are included in government​ purchases?

spending by​ federal, state, and local governments

The difference between the price the firm sells a good for and the price the firm paid other firms for intermediate goods is called

value added

To calculate personal income from national​ income, which of the following must the BEA​ do

add government transfer payments

When a significant fraction of domestic production takes place in​ foreign-owned facilities, a​ country's difference between GDP and GNP is as​ follows:

GDP will be much larger than GNP