Unemployment
Miguel is on temporary layoff. He is considered _____.
Unemployed
Consumer basket 2012-$225
Consumer basket 2013-$235
What is CPI for 2013?
104.4
The government takes 3 trillion in taxes, spends 2 trillion on government purchases and 2 trillion on transfer payments. What is private savings (surplus or deficit)?
1 trillion dollar deficit
The invention of new, more powerful computers would increase economic growth by increasing _____ productivity.
labor
The period between a business cycle peak and a business cycle trough.
Recession
Discouraged workers are considered _______.
Out of the labor force
CPI 2012-100 (base year)
CPI 2013-123.5
What was the inflation rate in 2013?
23.5%
If consumers decide to save more of their income (increase in savings rate) this will _______ the supply curve to the _____.
shift;right
Positive technological change would (shift/move along) the production function (up/down/to the left/to the right).
shift;up
Cyclical unemployment is the result of _____
recession/economic slowdown
John has turned down several job offers as he is looking for a job that best fits his skills. Curtis faces a lot of competition for a limited, but steady number of accounting jobs. What kind of unemployed are they?
John is frictionally unemployed
Curtis is structurally unemployed
In 1931 the president made $75,000. What is the equivalent in 2012?
CPI 1931-15.2
CPI 2012-229.6
$1,132,895
In comparison to a government running a balanced budget, a government that runs a budget deficit will _______ investment and ______ real interest rate.
decrease;increase
An increase n the aggregate hours of work would _______ labor productivity.
Not effect
What is the natural rate of unemployment?
Structural and frictional unemployment
The long-term, persistent, level of unemployment that economies aim toward
10 million are unemployed
150 million are employed
What is the unemployment rate?
6.25%
What distinguishes GDP deflator and CPI?
GDP deflator includes goods and services bought by producers.
CPI only includes goods bought by consumers.
If nominal interest is 6.5% and the inflation rate is 3%, then what is the real interest rate?
3.5%
Give three examples of knowledge capital:
anything having to do with education, technology, information, innovation, ect.
Inflation tends to _____ during the expansion phase of the business cycle and ____ during the recession phase of the business cycle
increase;decrease
The equilibrium wage is $6. The government imposes a minimum wage of $4. This will _____ unemployment.
not effect
Suppose prices of personal computers fall significantly and consumers respond by buying more personal computers. CPI would _____ the price decrease due to the _________ bias.
overstate;substitute
Y=$12, C=$8, I=$2, G=$2, TR=$2, T=$3 ( in trillions)
What is the level of private savings in the economy?
$3 trillion
New growth theory states that increases in _____ capital will result in increasing returns to scale at the _____ level.
knowledge;economy
Name a reason the U.S. economy has been more stable since 1950
Government policy
Unemployment insurance and government programs to curtail decline in spending
Services becoming a larger fraction of GDP and goods a smaller fraction.