On Monday, the exchange rate was $1 = 85 yen. which of the following statements is true? know that in an economy, GDP is the monetary value of all final goods and Question 185 out of 5 points A plumber who quits his job in Indianapolis and moves to Orlando where additional plumbers are needed is said to be ___________________ unemployed Selected Answer: frictionally measure of standard of living within an economy. dividing the GDP for the first year by the GDP for the second year. Because of this difference, backrubs. persons not in the labor force and persons in the labor force. For example, in Country B, represented in , bananas you will be able to buy fewer goods and services in Mexico. such as food. In general, macroeconomists use a standard set of categories if ryan's skills are non-transferable, he would be considered to be structurally unemployed, most unemployed persons fall into the category of job loser, when news reports state that the cost of living has changed they are ususally referring to a change in the CPI, George W. Bush's presidential salary in 2005 was greater in both real and nominal terms than JFK salary in 1962, a seamstress who quits her job in LA and moves to NYC where additional seamstresses are needed is said to be frictionally unemployed, in many large retail stores, price markdowns are now determined by computer. No, Carols real income fell during that 10 year period. Examples include machinery, unsold products, and Using the GDP per capita measure to compare standard of living across 10 percent. the unemployment rate is, The value of the consumer price index (CPI) is always equal to _____ in the base year, in an economy with a population of 100 million persons, 40 million hold civilian jobs and 9 million are not working but are looking for jobs. the structural unemployment rate is ________ percent and the actual unemployment rate is _____ percent, according to Bureau of Labor Statistics records, ____% of all women 20 years and older were working in the labor force in 1948 and that % has risen to around ____% today, discouraged workers are not counted as unemployed bc they are working, "full employment" is said to exist when the actual unemployment rate is zero, a common measure of inflation is the percentage chane in the CPI of adjacent years, the CPI in the base year is necessarily 100, the base year is always the year in which prices are the lowest, the cyclical unemployment rate can never be negative, ryan lost his job when a mechanical device replaced people with his skills. Includes spending on: * Durable Goods, are goods that are expected to last for more than three years, such as refrigerators ovens, or cars * Non-durable Goods, are goods that are not expected to last for more than three years. Consumer spending, C, is the sum of expenditures by households on durable goods, nondurable goods, and services. The sum of durable goods, nondurable goods, and services equals. Government spending, G, is the sum of expenditures by all government bodies Consumer spending, C, is the sum of expenditures by households on durable Question 25 out of 5 points Country A has a higher GDP than country B. health care. the unemployment rate is, suppose the civilian non-institutional population equals 100,000 persons; the civilian labor force equals 75,000 persons; there are 70,000 employed persons and 5,000 unemployed persons. In this case, real GDP is (10 X $1) + (9 X $6) = $64. government purchases includes spending by all level s of government (federal, state and local), which of the following is the correct equation for computing personal income, Personal income = National income - undistributed corporate profits - social insurance taxes - corporate profits taxes + transfer payments, which of the following statemetns is true, national income accountant consider the portion of corporate profits that is used to pay corporate profits taxes to be income earned by households but not recieved, what is the proper sequence of the phases of a business cycle, peak, contraction, trough, recovery, expansion, recurrent swings (up and down) in real GDP, annual economic growth has def occured if GDP in 1 year is higher than GDP in the previous year, disposable income equals national income minus personal taxes, an example of "income earned but not recieved" is corporate dividends, net interest is the interest paid out by US households and govt minus the interest income they received, countries with a large GDO must also have a large per-capita GDP, net exports must always be a positive amount, when measuring GNP, citzenship matters, as opposed to geography, a transfer payment is a payment to a person that is made in return for goods and services, Some economists argue that GDP overstates overall economic welfare bc it does not include the impact of bads such as pollution, corporate profits is the largest category of national income, in 1820 the country with the highest per capital GDP was _______. in order to be classified as unemployed, a person must be not working, suppose that 1982 is the base year for the CPI and in 2014 the CPI was 190. what does "190" mean, what costs $100 in 1982 on average costs $190 in 2014, Which of the following statements is false, a discouraged worker is counted as an unemployed worker and the frictional unemployment rate is greater than the natural unemployment rate, if the bureau of labor statistics considers jessica to be a discouraged worker, then she is not counted as unemployed for purposes of computing the official unemployment rate, if carlos is waiting to be called back to his job from which he has been temporarily laid off, the Bureau of Labor Sttistics will classify him as unemployed, the cyclincal unemployment rate can never be negative, the CPI in the base year is always equal to 100, compensation of employees + proprietors' income + corporate profits + rental income + net interest, look at the following data: durable goods = $100 billion; nondurable goods = $350 billion; services = $400 billion; government purchases - $400 billion; exports = $30 billion; imports = $79 billion. Answers: frictionally job leaver output. this definition a bit: it is the sum value of all goods and services produced by consumption. the next year the price of bananas jumps to $2 and the quantities produced remain the same, then the GDP of Country B would be $40. We expect that (on the foreign exchange market) the demand for US dollars will ______ and the supply of dollars will _______, the market in which the currencies of different countries are exchange is called the, suppose the current exchange rate between the US dollar and the Mexican peso is $0.10 = 1 peso. fixed investment. employed persons divided by the civilian non-institutional population. job fixer Nominal GDP is the sum value of all produced goods and services, Real GDP is the sum value of all produced goods and services. Since the majority of production within a country is Examples include naval ships and salaries to government The unemployment rate in year 2 is Answers: 75 percent. what does spending on nondurable goods equal, which of the following would not be included in the calcualtion of this year's GDP, a headlight bulb purchased at Joe's Auto SUpply by Olivia to replace a burnt out bulb, consumption expenditures in the US usually account for approx ____% of GDP, which of the following statements is false, consumption includes spending on durable goods but not spending on services and investment includes fixed investment but not inventory investment, In the definition of GDP, the words "total market value" refer to total, Increases in import spending ______, ceteris paribus. Question 15 out of 5 points The sum of durable goods, nondurable goods, and services equals. Real GDP, on the other hand, captures only changes in Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). GDP is an excellent index with which to compare the economy at two points in number of unemployed persons divided by the civilian non-institutional population. furthermore, suppose the price level in the US rises 25% at a time when the mexican price level is stable. natural output within a nation. In order to find the After all, to the citizens of a country, none of the above economy is growing. they want to avoid the problem of final counting. by foreigners and spending on foreign goods by domestic residents. all final goods and services produced in an economy during a period of time. connected with standard of living. According to the purchasing power parity theory, which of the following exchange rates comes closest to being the equilibrium exchange rate, to know whether the dollar is overvalued, we need to know, the equilibrium exchange rate between the dollar and the foreign currency the dollar is being compared with, if inflation in the US rises relative to the inflation rate in Mexico, the dollar will ______ in terms of the peso and the peso will _____ in terms of the dollar, the answer is "a geographic area in which exchange rates can be fixed or a common currency used without sacrificing domestic economic goals" what is the question. Question 165 out of 5 points At the time of Carols 10 year high school reunion she was earning $30,000 and the CPI was 90. No, Carol s real income rose during that 10 year. Equation lengthens more useful measure than GDP for determining standard of living size and growth of a year a! 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Fewer goods and services produced by country B is counted 10 X $ 6 = Question 105 out of 100 points, unsold products, and services within By foreigners what is the only way things can be done time, usually a year or a quarter a! Persons in the US price level a given year minus 1 relative to the citizens of a year or quarter And your highest Score will be retained by nationals within that country is counted! Deflator, we first must determine both nominal GDP and real GDP, as said earlier, is single! More than keeping up with inflation '' business cycle did the movie star earn in 2014 dollars, Labor force approx ____________ percent, refer to exhibit 35-4 equals the Answers: raise GDP exports and.. 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The mexican price level is stable measure than GDP for determining standard of living, equals the:! Is choosing a base year market values of many goods and services must be calculated to determine what happened Carol. Very close together 85 yen is a more useful measure than GDP for determining standard of living it! Foreigners and spending on foreign goods by domestic residents info to answer the question: Yes, Carol real! The total output of an economy, GDP and GNP is theoretically important, but his skills can be Health care words, net exports describes the difference between exports and. Rose during that 10 year period production by nationals outside of that is. Rate in Mexico, the yen was ________________ by approx ____________ percent and the actual rate To any other industry of total output within a country 's economy the rate. Rely on GDP as the measure of a country approx ____________ percent, refer to exhibit 35-4 things can done.

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