Exam 30: (AP) Macroeconomics: Part A

Since automating their client registration processes, many telecommunication companies have reduced their customer service and management staff by up to 50%. What is the resultant unemployment called?

If the MPC is 0.8, then what is the tax multiplier?

If the United States government spends $30 billion, what is the amount of demand for goods and services if the MPC is ¾?

When looking at the phases of a business cycle, the highest point is called a ________ and the lowest point is called a __________.

What will an increase in the money supply typically do?

The aggregate demand curve slopes downward for the following reasons except:

A software company manager assigns new roles within an Enterprise Resource Planning project according to recent training and acquired skills. This type of task assignment is referred to as:

Which of the following is the summary record of all of a country's international economic transactions within a specified period of time?

Structural rate of unemployment is also referred to as the natural rate of unemployment and it is consistent with aggregate production. The two economists who developed this concept in the 1960s are:

Some exchange rates are determined by supply and demand, which are unregulated. What type of exchange rates are these?

At its most basic level, economics is considered to be the study of how people deal with ________.

What happens to the equilibrium price and quantity of oranges if the demand for oranges increases, but the supply of oranges decreases?

Expansionary monetary policy decreases interest rates in the short run. What is the effect of expansionary monetary policy in the medium run?

Economics is the study of how people:

What are goods that are used together called?

Over the past 25 years, the manufacturing base in the United States has begun to erode due to outsourcing to countries with cheaper production. Skilled workers in automobile and textile manufacturing have found it difficult to find other work. What type of unemployment is this?

Which broad monetary category would solely liquid forms of money fit into?

In 1996, the "market basket" of services and goods that was used to calculate the CPI cost $200 and the CPI was equal to 100. Let's imagine that the same basket of goods now costs $300. What is the value of today's CPI?

Why does the PPC slope downward?

The mayor of Hiramville is looking at some startling statistics about his city. The labor force in Hiramville is 400,000 and there are currently 100,000 people who are unemployed. What is the unemployment rate, expressed as a percentage, in Hiramville? A))25% B)2)5% C)25% D)10%