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30 Cards in this Set

  • Front
  • Back
macroeconomics is concerned with
both long-run trends and short-term fluctuations in economic activity
Inflation and unemployment are
teh focus of macroeconomics
The total market value of all final goods andservices produced in a economy in a given year is:
gross domestic product
The single largest expenditure component in GDP is:
consumption
net investment equals
gross investment minus depreciation
The largest component of national income is:
compenstion of employees
The unemployement rate equals
(labor force-employed)/laborforce
The portion of unemployemnet that is due to teh mismatch between skills and jobs is called________ unemployment
structural
When the real GDP falls, the type of unemployement that is directly effected is:
cyclical
The natural rate of unemployemnet is generally thought of as the:
sum of frictional employement and structual employement
A price index is:
a measurment showing how the average price of bundle of goods changes overtime
Inflation is a increase:
the overall price level
Classical economists believed that:
unemployment could not persist for extended periods of time
What is the production fuction?
Y=f(L,K)
Aggregate production function describes the relationship between two variable
inputs and outputs
if supply of labor decreases, waht will happen:
wage rate willincrease and firms will decrease employment
Diminishing returns implies that:
as labor increases,labor productivity decreases
The reduction in consumption, investment or net exports that occurs when government spending increases is a known as:
crowding out
Economic growth is best measured as an increase in:
real person output
For economic growth to increase living standards:
the rate of growth of real GDP must exceed the rate of population increase
The productivity of labor is defined as:
output produced by a worker per hour
Labor productivity increases when:
Capital increases and labor remains the same
Which of the following represents human capital:
The knowledge and skills of workers
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