GDP
Which of the following is the primary measure of a nation’s income and output?
GDP
A person with a graduate degree in psychology who works a part-time job in a coffee shop is
Underemployed
Which of the following is NOT a part of the business cycle?
1. Peak
2. Trough
3. Contraction
4. Expansion
All of them are part of the Business Cycle
Why do you think the Federal Reserve Bank sometimes lowers interest rates on loans to commercial banks?
To encourage borrowing to stimulate economic activity
In which category would spending grow if the price of gasoline increased?
Transportation
Why are intermediate goods not included in GDP?
To avoid counting them twice in GDP
When the economy is working properly, what is the unemployment rate?
4% to 6%
How is the business cycle affected by unemployment
contraction
What would be the result of a combination of inflation and stagnant wages?
Goods would be more difficult to afford.
Give an example of an external shock?
Any natural disaster
What is one way that the gross domestic product differs from gross national product?
GDP does not include income earned outside the U.S. firms and citizens and GNP does.
What does it mean when a person is underemployed?
The person has a job but they are overqualified for it.
How is the business cycle affected by low interest rates
Expansion
Describe the purchasing power of a person who hasn’t received a raise in three years and whose savings earn .5% while the inflation rate is 2%.
His purchasing power is decreasing.
Carol, a single mother who works 35 hours a week at a job that pays slightly above minimum wage. She is considered ________________ ______________.
Working Poor
If real GDP falls for two consecutive quarters, the economy is said to be in a ______
Recession
When Alison, a college math professor, leaves her job at a small rural college and starts looking for a job at a large urban university, she is
Frictional unemployed
Number one hit on the pop charts
Illusion. Dua Lipa.
What is workfare?
A program that requires work in exchange for assistance
C + I + G + (X-M)=?????
GDP
two consecutive Recessions, the economy is said to be in a ______
Depression
Auto-workers who were laid off as a result of the 2008 recession suffered from
Cyclical unemployment
What do you see on a business cycle right before an recession
Expansion
If Jackson is paid an interest rate of 10% on his savings, but the inflation rate has risen to 20%, the purchasing power of his savings is
Decreased by 10%
Economists look to what to explain inflation?
Too much money in the money supply
Demand for goods exceeds supply
Producers raise prices in order to meet increased costs