Exam 2: Measuring the Macroeconomy

Which of the following is not one of the six key variables in macroeconomics?

If investors become more optimistic and expect that long-term earnings will increase at the same time that the real rate of interest decreases, we would

An individual in the United States wishing to invest in Europe would need to _____________ in the foreign exchange market.

The stock market

If investors become optimistic and expect that long-term earnings will increase, we would initially expect

Residential structures are a component of

If the CPI changes from 120 in one year to 126 the next, the rate of inflation over that time period is

The exchange rate

If the risk premium associated with holding stocks decreases at the same time that investors become more optimistic and expect that long-term earnings will increase, we would

Which of the following is not one of the six key variables in macroeconomics?

Okun's Law is a relationship between

An individual in Europe wishing to invest in the United States would need to _____________ in the foreign exchange market.

The CPI, which is a Laspeyres index, suffers from what economists call substitution bias. Thus, it tends to ______ the rate of inflation.

If investors become more pessimistic and expect that long-term earnings will decrease at the same time that the real rate of interest decreases, we would

Since 1948, the labor force participation rate has been

If the real interest rate increases, we would initially expect

Which of the following is not a reason that Okun's Law coefficient is greater than one?

Which of the following is not in GDP but should be?

If the risk premium associated with holding stocks decreases, we would initially expect

If the risk premium associated with holding stocks increases, we would initially expect