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Unit 1
Real GDP/CPI
Other Unit 2 Stuff
Unit 3
Weird Facts
100

The reason we study economics. 

Scarcity

100

If a worker's nominal wage rate increases from $10 to $12 per hour and at the same time, the general price level increases by 10%, the worker's real wage has: 

Increased by 10%

100

Alice has left her job in New York and is moving to Atlanta and looking for a job there.  Alice fits into what unemployment category? 

Frictionally unemployed

100
List two fiscal policies that would move an economy from a recessionary phase back to Long Run Equilibrium. 

Increase in Government Spending and Decrease in Taxes. 

100
The national animal of Scotland

Unicorn

200
If an economy is operating inside it's PPC curve, what is their current level of production? 

Inefficient 

200

If the CPI increases from 200 to 240 in a one-year period, then the inflation rate is...

20%

200

Which type of unemployment is caused by a recession? 

Cyclical

200

Assume the economy is in short-run equilibrium at point L.  In teh absence of any fiscal or monetary policy actions, what will happen in the short run and where will the economy settle? 

The SRAS curve will shift to the right, and the economy will be in long-run equilibrium at point K. 

200

The only planet that spins clockwise

Venus

300

At what price would this market be in equilibrium? 

$5.00

300

In 2007, the nominal GDP was $50 billion and the GDP deflator was 200. Thus the real GDP was:

$25 Billion

300

Given the follwoing chart, what is the GDP for this country? 

220 Billion

300

Assume the economy is currently at full employment on the LRAS.  What movement would result in the economy ending up in stagflation? 

Cost Push Inflation or Supply Decrease

300
This is the last letter added to the English alpabet

J

400

Assume household income has fallen dramatically in Country X and the cost of construction materials for building new houses has increased. How will these changes affect the equilibrium price and equilibrium quantity for new houses?

Equilibrium Price would be indeterminate and the equilibrium quantity will decrease. 

400

Given the following graph, what is the CPI for year 2? 

175

400

Given the following graph of the business cycle, which spots would the economy be in full employment (List all spots)? 

2, 4, 6

400

Assume that the marginal propensity to consume is .90. As a result of an increase in the tax rates, the government collects an additional $20 million.  What will be the impact on GDP?

180 million decrease. 

400

This company is the largest manufacturer of tires in the world

Leggo

500

Given the following graph, who has the comparative advantage in the production of Mangos and what would a mutually beneficial trade be for 5 tons of Coconuts? 

Zeetopia; 5 tons of Mangos. 

500

Given the following chart, figure out the Nominal and Real GDP for year 2. 

Nominal GDP=$280; Real GDP $200

500

Given the following chart, figure out the following informaiton: NRU-ARU-LFPR (All in percentages)

NRU= 3%, ARU=10%, LFPR=70%

500

Assume the goverment is in an inflationary stage and decides to decrease taxes by 150 billion and decrease spending by 150 billion.  Given an MPC of .75, what would the total effect on GDP? 

150 billion decrease

500

What color is hippo milk? 

Pink