The urban consumers that the CPI is based on includes:
the CPI does not include any of these. (institutionalized, incarcerated, and persons of the
... [Show More] military)
Which of the following doesn't characterize the properties of a dollar:
it has a fixed value that doesn't change over time.
An activity that would not be included in GDP would be:
paying a company for cleaning your house.
The natural rate of unemployment:
is the normal level of unemployment in an economy in the long run.
Sally is a U.S. citizen who works for an Italian company at the branch office located in Tulsa, Oklahoma. Sally's work will contribute toward:
U.S. GDP since the location of her office is in the U.S.
Comparing the cost of the same basket of goods in different locations:
Can create a price index to evaluate purchasing power across different locations.
Is based on the theory of purchasing power parity.
Can be used for international price comparisons.
Trade restrictions can prevent purchasing power parity from holding because:
The time and energy of importation paperwork can add to the cost of the good sold. Tariffs can add to the cost of the good sold. They can add costs to the selling price because they add to the seller's cost.
One fundamental idea in macroeconomics about inflation is:
if all wages rise, then inflation doesn't really affect anyone's purchasing power.
Which type of unemployment contributes to the natural rate of unemployment?
Real-wage unemployment
The producer price index is considered a good predictor of future consumer prices because increases in input prices:
eventually make it to consumers when they buy the final product.
In practice, the three measurements of inflation, the CPI, PPI, and GDP deflator:
all closely track each other.
are all positively correlated.
all measure inflation, but focus on different parts of the economy.
Just as indexing allows us to compare the cost of living across different periods of time, the ____________ is used to allow us to compare the cost of living across different locations.
purchasing power index
Ida May Fuller was the first person to:
receive a Social Security check.
The idea of purchasing power parity
rarely holds
When the prevailing market wage is above equilibrium:
the surplus of labor is the amount of unemployment in the market. the difference between the quantity supplied and the quantity of labor demanded is unemployment. unemployment occurs.
Kelly is a U.S. citizen who works for Burton located in Germany. Kelly's work contributes to:
U.S. GNP, but not U.S. GDP.
As new goods and services become available the basket of goods used to calculate the CPI:
periodically is updated in order to reflect the changes.
When maximizing economic growth is a country's goal it:
may work in opposition to the country's happiness in terms of satisfaction gained from leisure.
This table shows the price-level adjustment as compared to the United States.
Country Price-Level Adjustment
Australia -0.50
China 0.25
Mexico 0.34
United States 0.00
According to the information given in the table shown, if someone makes $40,000 in the U.S., what would his salary need to be in Mexico to maintain the same standard of living?
$26,400
Jake just quit his job as a shoe salesman and is looking for work as an accountant, which is what his college degree is in. Jake would be considered:
frictionally unemployed.
Why don't wages fall so that everyone with the skills and desire gets a job?
The government might prevent it, through minimum-wage legislation. Labor unions might prevent it, through bargaining backed by the threat to strike.
Firms themselves might prevent it, by voluntarily choosing to pay higher wages than necessary.
Now that Social Security payments are indexed the:
nominal value is adjusted to maintain a constant real value.
Upon getting a big promotion, Sally decides to buy a house in the neighborhood she grew up in as a child. In fact, the house she buys used to belong to a neighbor of hers, and so she's certain it's in good shape and well worth the $200,000 she pays for it. The only thing Sally needs to do is replace all the gutters for $1,000, which she happily does. How will GDP be affected by Sally's recent purchases?
GDP will increase by $1000.
The labor force does not include people in the working-age population who are:
retired, a full-time student, or stay-at-home parent.
Which type of unemployment leads to a natural rate of unemployment above zero?
Frictional unemployment
One of the most crucial ideas in macroeconomics is understanding that:
measuring total expenditures or total income both equal total production of an economy.
If a country experiences a negative growth rate in real GDP, it means:
people are producing less than they did the year before. the economy is shrinking. there are less goods to allocate in the economy than before.
The labor demand curve:
is provided by firms who want to hire workers at each given wage.
In the United States, the federal minimum wage in early 2016was:
$7.25 per hour.
When we say the cost of living has gone up, we mean that, looking broadly over a range of goods and services:
a dollar buys less today than it used to buy. [Show Less]