Unemployment
What is the equation to calculate Labor Force?
# Employed+ # Unemployed= Labor force
What happens to the quantity of imports after the domestic country imposes a tariff?
Decreases
borrower
Give the equation for MPS
MPS=1-MPC
What is frictional unemployment?
Unemployment while people are in between jobs or looking for another job
What is a discouraged worker?
Someone that is unemployed and no longer seeking employment
Which area is greater when the domestic country is importing a product: producer or consumer surplus?
consumer surplus
If private savings go up, what happens to a trade deficit?
(M-X) must fall
MPC is the slope of...
The slope of aggregate expenditure
If interest rates go up, what will happen to aggregate demand?
Aggregate demand will decrease
What is structural unemployment?
Unemployment b/c workers lack job skills and the "structure" of our economy doesn't have a job for them
How do you calculate government revenue during world trade before a tariff?
Trick question! there is no government revenue without a tariff
List at least one characteristic that occurs when we are at long run macro equilibrium
1. SRAS=LRAS=AD
2. Actual RGDP=Potential RGDP
3. Natural rate of unemployment=Actual unemployment
"Full employment"
Give the equation for Aggregate expenditure
AE=C+I+G+NX
What is fiscal policy or give an example
Actions by the government to regulate our economy
Ex: Tax laws
Give the equation for the Employment population Ratio
(Employed/Adult population)x100=____%
If the United States is exporting a good to another country, and the foreign country imposes a tariff on the product, what will happen to domestic producer surplus?
Domestic producer surplus will shrink or decrease because it becomes more expensive to sell their product- due to paying the tariff
When taxes decrease, what happens to consumption and aggregate demand?
Consumption increases and aggregate demand increases
What is the status of our economy when AE<GDP
What has to happen to inventories
Macro shortage
Inventories will rise
What is monetary policy or give an example
Actions by the federal reserve to regulate our economy
Ex: money supply or interest rates
Give the equation to calculate the Labor force participation rate
(Labor force/Adult population)x100=____%
Draw a foreign trade graph where the domestic country is importing a good from another country
Hint: the domestic price should be higher than the world price
See graph
When domestic investment increases, what happens to a trade surplus?
(X-M) must fall
Give the equation for MPC
change in consumption/change in disposable income
What is the equation for the multiplier effect?
(Change in eqbm real gdp/change in autonomous expenditures)
Or
1/(1-MPC)