Macro
__________describes the condition where a person cannot get a job but is willing to work and is actively seeking work.
Unemployment
The National Income and Product Accounts (NIPA) help economists and policymakers to
follow the long-run course of the economy to determine whether it has grown or stagnated.
Economic growth is best defined as an increase in
either real GDP or real GDP per capita.
Recurring increases and decreases in an economy's real GDP over periods of years are called
business cycles.
When the price level rises, real balances fall, purchasing power declines, and people demand less output. This describes the__________
Real Balance Effect
____________investment refers to the purchase of assets for financial gain; ________investment refers to the purchase of newly created capital goods.
Financial Economic
Setup Corporation buys $100,000 of sand, rock, and cement to produce ready-mix concrete. It sells 10,000 cubic yards of concrete at $30 a cubic yard. The value added by Setup Corporation is
$200,000.
One reason growth is a widely held economic goal is
-rising real wages and income provide more opportunities to individuals and families.
-the economy is better able to meet people's wants and resolve socioeconomic problems.
-new programs can be undertaken without impairing existing levels of consumption, investment, or public goods production.
Most economists agree that the majority of most business cycle variations are caused by
an unexpected change in the level of total spending.
The determinants of aggregate demand explain shifts in the __________
aggregate demand curve.
Suppose a family's income increases by 3 percent at the same time that inflation is 5 percent. Then the purchasing power of their income will ___________
decrease.
If in some year gross investment was $120 billion and net investment was $65 billion, then in that year the country's capital stock
increased by $65 billion
____________encourages growth by allowing producers to make profitable investment decisions based on market signals.
A competitive market system
Kara voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand, she is now searching for a position in management. Kara presently is
frictionally unemployed.
The immediate-short-run aggregate supply curve represents circumstances where
both input and output prices are fixed.
At the core of understanding economic growth is the idea that to raise living standards over time, an economy must_________ and___________
save and invest.
In national income accounting, the personal consumption expenditures category includes purchases of
consumer durable goods, consumer nondurable goods, and services.
Technological advances account for about ____ percent of U.S. productivity growth.
40
____________shows the relationship between the unemployment rate and the size of the negative GDP gap.
Okun Law
Other things equal, an improvement in productivity willshift the aggregate supply curve ____________
to the right.
If consumers become pessimistic, the economy is likely to experience a __________________
negative demand shock.
To equalize the GDP totals produced by the expenditures method and the income method, NIPA accountants
add a statistical discrepancy to national income.
The "rule of 70" is a formula for determining the approximate number of
years that it would take for a value (like real GDP) to double.
__________ affects both the level of real income and the distribution of income.
Inflation
Suppose that productivity falls and nominal wages rise in a particular economy. Other things equal, the aggregate
supply curve will shift leftward.