Macro
______________ depicts short-run fluctuations in output and employment.
Business cycle
The agency responsible for compiling the National Income and Product Accounts for the U.S. economy is the
Bureau of Economic Analysis.
Economic growth is best defined as an increase in
either real GDP or real GDP per capita.
Recurring upswings and downswings in an economy's real GDP over time are called
Business cycles
___________shows the amount of real output that will be purchased at each possible price level.
Aggregate demand curve
Real ____ measures the value of final goods and services produced within the borders of a country, adjusted for price changes.
GDP
Goods and services purchased by ultimate users, rather than for resale or further processing
Final goods and services
Given the annual rate of economic growth, ____ ---_____ ____allows one to calculate the number of years required for real GDP to double.
the "rule of 70"
The production of durable goods varies more than the production of nondurable goods because
purchases of durable goods are postponable.
If the price level increases in the United States relative to foreign countries, then American consumers will purchase more foreign goods and fewer U.S. goods. This statement describes
the foreign purchases effect.
________describes the condition where a person cannot get a job but is willing to work and is actively seeking work.
unemployment
_______ _____ can be determined by subtracting the purchase of intermediate products from the value of the sales of final products.
Value added
_________encourages growth by allowing producers to make profitable investment decisions based on market signals
Competitive market system
Innovations such as the microchip and the Internet lead to business cycle variations because
significant innovations occur irregularly and unexpectedly.
Other things equal, if the national incomes of the major trading partners of the United States were to rise, the U.S.
aggregate demand curve would shift to the right.
____________ ___________refer to unexpected changes in the desires of households and businesses to buy goods and services.
Demand shocks
The largest component of total expenditures in the United States is
Personal consumption
________________is a demand factor in economic growth
an increase in total spending in the economy
The natural rate of unemployment is the
full-employment unemployment rate.
Other things equal, if the U.S. dollar were to depreciate, the aggregate supply curve would shift to the
left
The condition where firms may be reluctant to change prices for fear of setting off a price war or losing customers to rivals.
Price stickiness inflexible prices
income received by households less personal taxes
disposable income
The number of worker-hours multiplied by labor productivity produces________
Real GDP
The annual rate of inflation can be found by subtracting
last year's price index from this year's price index and dividing the difference by last year's price index.
Given a fixed upsloping AS curve, a rightward shift of the AD curve will
increase both the price level and real output.