Macroeconomics Questions

14-4 What establishes the value of fiat money?A) our collective trust and confidence that the central government, which decrees that money cannot be refused as payment for debtB) gold and silver owned by large commercial banksC) the central gov. authority's promise to redeem fiat money for gold and silver upon demandD) none

14-10 M1 refers toA) the most narrowly defined money supplyB) currency held by the public plus checking acct. balancesC) the smallest $ amount of money supply definitionsD) all

14-2 Which of the following defines the "unit fo account" function of money?A) a common measurement of the relative value of different goods and servicesB) the ability of money to hold value over timeC) the materials used to to manufacture money are of medium grade or quality so that people will not hoaard money for its commodity valueD) money is widely accepted in exchange for goods and services

14-11 The M1 definition of the money supply consists of A) coins and currency in circulationB) coins and currency in circulation, and checkable depositsC) federal reserve notes, gold certificates, and checkable depositsD) federal reserve notes and bank loans

If someone who was working full time is now only working part time, this change in status will cause the unemployment rate to:

If the population of the United States is 260 million, the labor force is 130 million, and 120 million workers are employed, the rate of unemployment is _____.

Workers who are in the process of changing jobs are counted as being:

Which of the following is counted as consumption expenditure?

Which of the following items is included in gross private domestic investment?

Suppose that government spending on defense rises by $50 billion. What happens to the aggregate demand curve if the multiplier is greater than 1?

A country's structural unemployment rate is 3.2%, the natural unemployment rate is 5.6%, and the cyclical unemployment rate is 4.7%. The frictional unemployment rate is _____ and the unemployment rate is _____.

How will a recession in the economies of our foreign trading partners affect U.S. aggregate demand?

The town of Marble Falls has 10 workers, of which 8 were employed and 2 were actively seeking work. After many months of seeking work, one of the unemployed workers became discouraged and stopped looking for work six weeks ago. The unemployment rate in Marble Falls is now:

Suppose in 2027, nominal GDP in a country Clarendon was $12,840 billion and real GDP was $10,560 billion. Calculate the value of the implicit price deflator, in the way such numbers are normally published.

According to the Bureau of Labor Statistics, a person who is not working and is not looking for work is:

According to the Bureau of Labor Statistics, most U.S. adults are either:

The aggregate demand curve slopes downwardI. for the same reasons that an ordinary demand curve does.II. in part because when the price level falls, the real wealth of the public falls, and this induces people to change their consumption.III. because as the price level falls, the net export component of aggregate demand increases

When the Great Depression reached its trough in 1933, real GDP had fallen by ________ since the depression began in 1929.

Refer to the table: What is consumption?Total income$5731Household purchases of durable goods$1108Household purchases of nondurable goods$702Household purchases of non-education services$203Household purchases of education services$302Household purchases of new housing$816Purchases of capital equipment$333Inventory changes$75Purchases of new structures$267Depreciation$401Local government spending on goods and services$236State government spending on goods and services$419Federal government spending on goods and services$1182Transfer payments$707Foreign purchases of domestically produced goods$217Domestic purchases of foreign goods$129a. $4,550b. $2,315c. $3,270d. $2,477

Refer to the graphs. A decrease in Y from Y1 to Y2 is explained as follows:a)An increase in P from P1 to P2 causes the money-demand curve to shift from MD1 to MD2; this shift of MD causes r to increase from r1 to r2; and this increase in r causes Y to decrease from Y1 to Y2.b)A decrease in P from P2 to P1 causes the money-demand curve to shift from MD1 to MD2; this shift of MD causes r to increase from r1 to r2; and this increase in r causes Y to decrease from Y1 to Y2.c)The Federal Reserve increases the money supply, causing the money-demand curve to shift from MD1 to MD2; this shift of MD causes r to increase from r1 to r2; and this increase in r causes Y to decrease from Y1 to Y2.d)An increase in the price level causes the money-demand curve to shift from MD2 to MD1; this shift of MD causes r to decrease from r2 to r1; and this decrease in r causes Y to decrease from Y1 to Y2.