Econ 211 Exam 2 UNL

which of the following are reasons why teenagers have a much higher unemployment rate than adults?

Have less geographic mobility, "fired" more frequently, quit more frequently, and have lower skill levels

The unemployment rate can be most accurately described as the number of people ____ divided by the labor force multiplied by 100.

Unemployed

The long run trend of the US economy is ____

Expansion and growth

Business cycles are ___

movements of economic activity over periods of years

when inflation occurs each dollar of income will buy ____ goods and services than before.

less

In the short run when prices are sticky an unexpected decrease in total spending will cause ___

Unemployment to rise, firms to sell fewer units of output, firms to cut back on production, and GDP to decline

The consumer price index (CPI) relies on the calculation of

prices of a fixed basket of goods that changes every two years

___ reduces the purchasing power of money

inflation

on average, unemployment rate among less educated workers are ____ than workers with more education

higher

The phase of the business cycle when the economy is near or at full employment in the level of real output is at or near capacity is called a

peak

The major source of cost push inflation has been so called ___ shocks

supply

Which of the following reasons explain my unemployment rates differ among nations how to get any given time

nations have different natural rates of unemployment and nations may be in a different phase of their business cycles

It is widely excepted at the immediate cause of large cyclical changes in output and employment levels is a change in the level of

total spending

Workers in lower skilled occupations have ____ unemployment rates than workers in higher-skilled occupations.

higher

The difference between actual and potential GDP is called a ___ gap

GDP

Unexpected events that drive economic cycles and fluctuations are called economic

shocks

which of the following describe why unemployment rates are higher for African-Americans and Hispanics then for whites

lower rates of educational attainment and greater concentration and lower skilled occupations

recessions are periods when

Output and employment are falling

___ consumer goods are affected more by the business cycle than ___ consumer goods

Durable, nondurable

those who are working are defined as ___ And those who are not working but actively seeking work are defined as ___

employed, unemployed

Demand pull inflation is caused by

Excess total spending

The rate of inflation is equal to

The percentage growth of CPI from one year to the next

Cost push inflation will reduce supply in Louisville output and employment which will eventually generate an economic

recession

Cost push inflation is caused by an increase in

the per-unit production costs at each level of spending

The long run trend of US economy is expansion and economic

growth

I could get supplies represented as a schedule or curve showing the relationship between a nation's ___ level index and the amount of real domestic output that firms in the economy produce

price

The intersection of aggregate demand and aggregate supply determines

The equilibrium price level and equilibrium real GDP

Which of the following are the four components or determinant of aggregate demand

net exports spending, consumer spending, Government spending, and investment spending

A schedule or curve that shows the amount of a nations output (real GDP) that buyers collectively desire to purchase at each possible price level is called

aggregate demand

The aggregate demand (AD) curve will shift to the right when consumers expect their future incomes to

rise

An increase in investment spending at each price level will shift the aggregate demand curve to the

right

The wealth effect is reflected by

rightward shift of the aggregate demand curve

Which of the following are determinants of aggregate demand

change in investment spending, government spending, consumer spending and net export spending

if firms are optimistic about the business outlook investment will ___ and the investment demand curve shifts ___

increase; rightward

All else equal a/n ___ In aggregate demand assuming constant exit supply will result in a decrease in the quantity demanded for real GDP

decrease

If consumers expect inflation in the near future consumers will want to buy more products now and

Aggregate demand will increase

An increase in consumer wealth prompts customers to decrease savings and ___ spending

increase

Higher expected returns on investment will

increase the demand for capital and shift the aggregate demand curve to the right

Which of the following summarize the effect of rising national income to Brodd on US exports

foreigners are encouraged to buy more US products, US aggregate demand curve shifts to the right, and US exports rise