Exam 11: Measuring Macroeconomic Activity

The labor force is 100 million and the unemployment rate is 5 percent.One million people quit looking for a job.What is it called when an individual leaves the labor force,and in this case what is the new unemployment rate?

The labor force in country XYZ is 10,000,000 and the number of employed is 7,000,000.Calculate the number of unemployed and the unemployment rate.

The market value of all currently produced final goods and services within a county in a given period of time by domestic and foreign supplied resources is called:

The difference between personal income and disposable income is:

Compared to the GDP deflator,the consumer price index measures:

Prostitution is made legal in the United States,what is the impact on GDP?

The value of currently produced final goods and services measured in current year prices is called:

Which of the following is not included in GDP?

An economy with only the household and firm sectors is called:

What is the relationship between unemployment and the price level in the short run?

Commodities that last less than three years and may be consumed very quickly are called:

The system of accounts for each country,based on the circular flow,whose purpose is to measure the level of economic activity is called:

A trade balance where exports exceed imports is called:

The expenditure approach to calculating GDP for an open economy entails adding consumption,investment,and government purchases.

To compute GDP:

Once households pay taxes,they have two options with their disposable income: consume or save.

The Full Employment and Balanced Growth Act of 1978 is also called the Humphrey-Hawkins Act and requires the President to appear before Congress twice a year to present his forecast for the economy.

The natural rate of unemployment is also called:

Intermediate goods and services are excluded in the calculation of GDP.

The producer price index measures: