What economic event primarily led to the shift from Classical Economics to Keynesian Economics?
The Great Depression
This is the extra output a firm can produce with one additional unit of labor, holding all else constant.
Marginal product of labor
In the long run, government shutdowns traditionally _______ GDP growth and unemployment.
Have a negligible effect on
Which type of unemployment is NOT included in the natural rate of unemployment?
Cyclical unemployment
Which American Girl Doll famously lived through the Great Depression?
Kit Kittredge
______ are considered sticky in the short run, but flexible in the long run.
Prices (or wages)
In the investment function, investment ______ when real interest rate r increases.
Decreases
According to the Life Cycle Hypothesis and Permanent Income Hypothesis, when do workers save the most money? (in terms of their income, not age)
When their income is highest
What do we call an unemployed worker who has previously searched for jobs, but stopped their search due to a lack of hope?
Discouraged worker
Which former US President had shoes thrown at his head during a press conference?
George W. Bush
Changes in nominal GDP can be due to changes in prices or quantities, but changes in real GDP can only be due to changes in ______.
Quantity
The Cobb-Douglas equation below represents _____ returns to scale.
Y=K^0.4L^0.3
Decreasing
If the current price of a bond is $80 and the future payment is $100, what is the effective yield of this bond?
25%
If the adult population is 600 million, of which 200 million are unemployed and 350 million are employed, what is the size of the labor force?
550 million
What is the name of the TikTok dog that has "Greenie Time" complete with a song every night?
Daisy (the Maltese)
Unemployment is an example of a(n) _______ indicator.
Countercyclical
A budget deficit occurs when _____ is greater than _____.
Government spending is greater than tax revenue
The high rate of return on wealth is making _______ increasingly important in personal capital accumulation. (and thus contributing to income inequality!)
Inheritance
This type of worker is not included in our typical measures of unemployment (U3) but is included in our more robust measure of unemployment known as U6.
Marginally attached workers (or discouraged workers)
Which famous inventor never married but did fall in love with a pigeon?
Nikola Tesla
Given the information below, what are total exports of the country?
Consumption = 50 million
Investment = 15 million
Government Spending = 8 million
Imports = 2 million
GDP = 80 million
9 million
What is the Marginal Product of Labor for the following Cobb-Douglas production function?
Y=4K^0.6L^0.4
1.6K^0.6L^(-0.6)
This occurs when increased government borrowing discourages private spending.
Crowding out
What do we call a wage offered to workers that is above equilibrium wage in order to encourage higher productivity and welfare?
Efficiency wage
Who won the 10th annual Hunger Games?
Lucy Gray Baird