ECN 211 EXAM 2 ASU Questions with Complete Solutions 100% Verified GDP is - Correct Answer value of all final goods and services produced within a country in a given period of time.Y = C + I + G + NX - Correct Answer Y = economy's total expenditure C = consumption in economy I = imports in economy G = government spending NX = net exports Net exports equal - Correct Answer exports minus imports CPI is used to - Correct Answer monitor changes in the cost of living over time Inflation rate - Correct Answer percentage change in the price level from the previous period Indexation refers to - Correct Answer using a law or contract to automatically correct a dollar amount for the effects of inflation For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must - Correct Answer be available for work Labor-force participation rate tells us the fraction of the population that - Correct Answer has chosen to participate in the labor market People who are unemployed because they are in search of a job that suits their skills are included within
- Correct Answer frictional unemployment
The natural unemployment rate includes - Correct Answer both frictional and structural unemployment 1 / 2
Wages set above the equilibrium wage by - Correct Answer firms to increase productivity are called efficiency wages Who in the adult population is counted as "employed" in U.S. labor statistics? - Correct Answer people who are temporarily absent from their job and people who work without pay in a family member's busines Measure productivity by - Correct Answer Divide the quantity of output by the number of hours worked Industrial machinery is an example of - Correct Answer -factor of production that in the past was an output from the production process -physical capital.-something that influences productivity Cyclical unemployment is closely associated with - Correct Answer short-run ups and downs of the economy Calculate GDP - Correct Answer GDP=C+I+G+(X-Im) Real vs. Nominal GDP - Correct Answer real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP Intermediate vs. Final Goods - Correct Answer intermediate goods-goods used in the production of final goods final goods- final goods are the goods which are ready for sale in the market Expenditure Approach - Correct Answer The national income accounting method that measures GDP by adding all the spending for final goods during a period of time -One way to measures GDP -GDP = C + I + G + (X - M)
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