Exam 30: (AP) Macroeconomics: Part A

In Keynesian economics, "liquidity trap" refers to instances when demand for money becomes inelastic, which means that further introduction of money into the economy will not lower interest rates. What is the shape of a demand curve during a liquidity trap?

Economists postulate that there is a relationship between inflation and unemployment within societies. They state that when the real GDP of a country is high, the actual unemployment rate falls below its natural level. What effect does this have on inflation?

What does a country have if the total value of its commodity exports is greater than the value of its imports?

Jason and his graduating college class of 2009 spent, on average, 4.5 months in finding appropriate jobs that match their individual skills and interests. During this average time of searching, what is this type of unemployment referred to?

What would happen if bond prices were to fall?

Julia got fired from her magazine publishing job in New York City about a year ago. She received unemployment compensation for six months, during which time she actively looked for a new position. After that time, Julia unfortunately had to move back in with her parents in Iowa at which time she stopped looking for work. What is Julia's present unemployment status?

Germany's manufacturing base has seen an increase in productivity and exports over the past decade. A rightward shift in the aggregate supply curve in this country is most likely due to:

In a free-market economy, the price of rice following a surplus is likely to:

Although demand changes with a change in price, there are also five general changes that will also lead to a change in demand for people-regardless of whether or not the price changes. Which of the following is one of these changes?

In a given economic system, the difference between real GDP and nominal GDP is:

What is the main difference between the two sub disciplines in economics: microeconomics and macroeconomics?

What is the most powerful tool the Fed has for adjusting bank reserves?

In a small county, the total number of people in the labor force is 15,000. There are currently 12,850 people who are working in paid jobs in both private and public enterprises. What is the unemployment rate in this county?

Which of the following is an example of fiat money?

The following are examples of commodity money except:

How do a particular nation's citizens benefit from buying goods that have been imported?

How do economists compare how rich or poor different nations are?

If the dollar appreciates relative to the Philippine peso, then which of the following is true?

To increase the money supply in the United States, the Federal Reserve:

What economist expressed a statistical relationship between the rate of growth of money wages and unemployment? A)J)M. Keynes B)A)W. Phillips C)M) Friedman D)J)A. Hobson