Weeks 1-2
Week 3-4
Week 5
Weeks 6-7
Weeks 8-9
100
What is a positive statement? What is a normative statement?
Positive = fact
Normative = should be/opinion
100
Give the conditions that allow you to be considered employed and unemployed.
Employed: An employed person is any person 16 years old or older who meets one or more of these conditions:
1. who works for pay, either for someone else or in his or her own business for 1 or more hours per week,
2. who works without pay for 15 or more hours per week in a family enterprise
3. who has a job but has been temporarily absent or on leave, with or without pay.
Unemployed: An unemployed person is a person 16 years old or older who meets all three of these conditions:
1. is not working,
2. is available for work, and
3. has made specific efforts to find work during the previous 4 weeks.
100
Is bitcoin considered to be fiat, token, or commodity money?
Fiat and token monies are the same thing- bitcoin would be considered to be fiat/token. It doesn't have any intrinsic value like gold does!
100
Why are intermediate goods not included in GDP?
To avoid double-counting
100
If there is a rise in investment, what happens to AD?
AD also rises, leading to an eventual new equilibrium where Y=AD again.
200
How do we calculate gdp per capita? What should we be careful of when calculating this?
GDP/Population
Should keep UNITS in mind, i.e. GDP is in billions and Population is in millions
When calculating, keep everything in the same unit!
200
What are the four types of unemployment?
Cyclical, Frictional, Structural, Natural (Frictional + Structural)
200
If I'm at point A where I know I'm able to get a final grade of 84, would it be more beneficial to me to be at point B where I could be at the same final grade?
No, because you would be sacrificing more hours of your leisure time to study just to get the same grade. The more up and to the right your indifference curve, the happier you are- should not be going backwards to point B!
200
Give the full expenditure approach equation.
Y = C + I + G + (X-M)
200
True or False: Changes in autonomous consumption changes the slope of the AD curve.
False: changes in autonomous consumption changes the y-intercept of the AD curve, therefore only shifting it upwards or downwards depending on consumption spending.
300
How do we calculate any growth rate?
((Year 2 value - Year 1 value)/(Year 1 value)) x 100
300
Within the market for labor model, where does producer surplus lie and where does consumer surplus lie? Draw the full graph.
300
If the interest rate recently increased by 2%, how would my feasible frontier shift in relation to consuming now vs. later?
What the maximum I could consume now with this change in interest rate, if $200 is available in the later period and the interest rate was originally 3%?
Feasible frontier would shift left on the consuming now axis (x axis). I wouldn't be able to consume as much now.
Maximum that could be consumed now: $190.48
300
If a TV is assembled and is ready to sell in 2023 but doesn't get sold until 2024, which year's GDP will this TV count towards?
2023 GDP as inventory/investment
300
True or False: In reality, aggregate investment is more responsive to the interest rate than expected profits.
False: In reality, aggregate investment is more responsive to expected profits and the business environment than interest rates.
400
What are the 3 conditions that are required to stay in the malthusian trap?
1. There is diminishing average product of labor.
2. Population will rise in response to increases in wages.
3. The pace of improvements in technology is not quick enough to offset the diminishing average product of labor brought on by the increases in population.
400
If in Eugene,
Employment level = 180.6
UR = 7.6%
Find LF and UL (all in thousands)
LF = 195.45 or 195,450
UL = 14.85 or 14,850
400
A firm's project costs $53,745 and the expected rate of return is 4% while the interest rate is 7%. How much should the firm expect to take out in loans?
The firm shouldn't take out anything to invest in this project!!
Expected rate of return < Interest rate
400
In what scenario would we need the GDP deflator, and in what scenario would we need the CPI?
GDP deflator: when we need to see how much quantities have changed, while holding prices fixed. When finding real GDP when we have nominal GDP.
CPI: when we need to see how much prices have changed, while holding quantities fixed. When finding inflation. Remember, need the CPI of two different years to find the rate of inflation!!
400
According to the Ricardian Equivalence model, the value of the multiplier would _____ if the MPS decreased, due to a decrease in _____.
According to the Ricardian Equivalence model, the value of the multiplier would increase if the MPS decreased, due to a decrease in government spending.
500
1) What is diminishing average product of labor?
2) From the malthusian model, what does the equilibrium represent?
1) Average output per worker decreases with each additional worker added.
2) At equilibrium, living standards fall back to the subsistence level.
500
In relation to the wage and price setting curves, if there is all of a sudden more competition in the market between firms, what happens?
Price setting curve shifts up with more competition, wage setting curve does not shift.
500
Say a project costs $1450. This project has a present value of $1230 when the interest rate is 7% and $1330 when the interest rate is 5%. What must be true of the value of the interest rate r where the
firm switches from undertaking the project to not undertaking the project?
A) r = 5 %
B) r > 5%
C) r > or = 5%
D) r < or = 5%
E) 5% < r < 10%
A) r = 5 %
D) r < or = 5%
500
What equation should we use to convert the price of a good between years?
500
What happens to wages and prices when the unemployment rate is above the equilibrium level of unemployment?
Above equilibrium = more unemployment than what's expected/should be. This creates downward pressure on wages and prices.