Macroeconomics Chapter 4 Measuring Output & Unemployment

23 Questions | Total Attempts: 130

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Macroeconomics Quizzes & Trivia

Questions and Answers
  • 1. 
    What does GDP stand for?
    • A. 

      Gross Domestic Product

    • B. 

      Greatest Dollar Product

    • C. 

      Green Dollar Prolific

  • 2. 
    What is Nominal GDP ?
    • A. 

      # used to balance general fluxucations of % value with the economy.

    • B. 

      Unadjusted GDP.

  • 3. 
    What is "Real" GDP?
    • A. 

      # used to balance general fluxucations of % value with the economy.

    • B. 

      Unadjusted GDP.

  • 4. 
    What is Price Index?When __________ is deflated to = the average level of prices.
    • A. 

      Nominal

    • B. 

      Real

  • 5. 
    Real GDP = Nominal GDP divided by.....
    • A. 

      Price Index

    • B. 

      Nominal

    • C. 

      Real GDP

  • 6. 
    If nominal GDP has risen with prices, then Real GDP is ______________.
    • A. 

      Increased

    • B. 

      Decreased

    • C. 

      Unchanged

    • D. 

      None of the above

  • 7. 
    USA Accounting system is the National Income & Product Accounts. (NIPA)
    • A. 

      True

    • B. 

      False

  • 8. 
    Final Goods are things to produce things like coal, steel, etc.
    • A. 

      True

    • B. 

      False

  • 9. 
    Intermediate Goods are things to produce outputs like coal, steel, etc.
    • A. 

      True

    • B. 

      False

  • 10. 
    Name the 4 Final Goods:
    • A. 

      Aggregate Consumption (all goods)

    • B. 

      Aggreate Investment (to build businesse/machines)

    • C. 

      Governmental Purchases

    • D. 

      Imports

    • E. 

      Exports

  • 11. 
    GDP does not include capital assets and does include the national income.
    • A. 

      True

    • B. 

      False

  • 12. 
    The Value-Added Approach to calculating GDP is by studying goods directly. Automaker pays vs. Automaker receives =value added
    • A. 

      Yah!

    • B. 

      Nah...

    • C. 

      That sounds about right..?

    • D. 

      Where are the drinks.

  • 13. 
    Income from selling the product vs. the value of the products themselves is The income Approach.
    • A. 

      True

    • B. 

      False

  • 14. 
    Which is an indication if the economy would produce if labor were fully employed & if plants/machines were used at their normal rates?
    • A. 

      Potential GDP

    • B. 

      Real GDP

    • C. 

      Nominal GDP

  • 15. 
    % difference between real GDP & Potential ?Actual less than potential= negative
    • A. 

      Output Gap

    • B. 

      Input Gap

    • C. 

      Baby Gap

    • D. 

      Potential GDP

  • 16. 
    Problems in Measuring Output
    • A. 

      Measuring Quality changes

    • B. 

      Measuring Service Output

    • C. 

      Measuring nonmarket Goods

    • D. 

      Measuring Quality Output

  • 17. 
    A Green GDP is difficult to measure because Natl income doesnt include the depletion of hte stock of natural resources or quality of enviorment.
    • A. 

      True

    • B. 

      False

  • 18. 
    Ratio of # seeking employment vs. labor force
    • A. 

      Unemployment

    • B. 

      Standard of Living

    • C. 

      Labor Force

    • D. 

      None of the Above

  • 19. 
    Seasonal Unemployment
    • A. 

      Varies predictably between seasons.

    • B. 

      From 1 job to another (college graduate)

    • C. 

      Long term (past 6 months)

    • D. 

      When it increases when the economy slows down.

  • 20. 
    Frictional Unemployment
    • A. 

      Varies predictably between seasons.

    • B. 

      From 1 job to another (college graduate)

    • C. 

      Long term (past 6 months

  • 21. 
    Structural Unemployment
    • A. 

      From 1 job to another (college graduate)

    • B. 

      Long term (past 6 months)

    • C. 

      When it increasses when the economy slows down.

  • 22. 
    Cyclical Unemployment
    • A. 

      From 1 job to another (college graduate)

    • B. 

      Long term (past 6 months)

    • C. 

      When it increasses when the economy slows down.

  • 23. 
    Okun's Law
    • A. 

      Recession -> decrease in output

    • B. 

      Recesstion -> increase in output

    • C. 

      1% increase of unemployment= 2 % -output gap