What is the definition of productivity
Output divided by quantity of input
Human capital represents
The education, skills and training embodied in workers
The rules of the game refer to
Any factor that facilitates production and exchange, such as tax laws and property rights
Labor production is measured by
Total output divided by the number of units of labor employed
The purchase of a new Boeing fighter jet by Israel is classified in the us GDP accounts as
Export expenditure
If the price index last year was 100 and today it is 167, what is the inflation rate over this period
67 percent
A measure of a country's production is it's
Gross domestic product
The expenditure approach to measuring GDP is done by using data on only
Consumption expenditure, investment, government expenditure on goods and services, and net exports of goods and services
The difference between nominal GDP and real GDP is
The prices used in their calculations
What was the result of increased oil prices during the 1970's
Aggregate supply decreasing, causing cost-push inflation
Demand-pull inflation is associated with
Increasing aggregate demand and lower unemployment
The real interest rate can be expressed as the
Nominal interest rate minus the inflation rate
Unemployment arising from mismatch of skills is called
Structural unemployment
The only job justin ever holds is preparing income tax forms at h and r block from January 2 to April 15. In March, while he is still working, he sends his resume to prospective employers. In march he was counted as
Part of the labor force
Economic fluctuations
Are linked, but not perfectly synchronized, across countries
During the Great Depression, president Hoover
Incorrectly called for an increase in taxes
Which of the following is not a flow variable
The 100 dollars Susan keeps in her purse, in case an emergency arises
Which of the following would not increase the labor productivity
A lower unemployment rate
Labor productivity measures
Output per unit of labor
Which of the following would be likely to cause a decrease in the labor productivity growth rate
A service sector that is growing as a percentage of GDP
Productivity is important because
It ultimately increases a nations standard of living
If Q is total real output, K is capital in use, and L is labor employed, the productivity of labor is measured by
Q/l
The diminishing slope of the per-worker production function reflects the law of diminishing marginal returns
True
While economic expansions average about three and one half years in duration, economic contractions average about
One year in duration
In U.S. History, recessions have usually lasted longer than expansion periods (false)
False
If the inflation rate is 5 percent and you receive a wage increase of 5 percent,
Your nominal income increases by 5 percent but your real income is unchanged
An increase in a persons real wage necessarily means
Greater purchasing power
If the nominal interest rate is greater than the real interest rate,
Inflation must be occurring
Because of the circular flows of expenditure and income in the economy, total ___ equals total ___ equals total ___.
Expenditure; income, value of production
Over the long run, technological change increases both labor productivity and unemployment rates (false)
False
Which of the following is the best indicator of the standard of living
Real GDP per capita
Which of the following does not contribute to labor productivity growth
Growth of the labor force
The U.S. Is experiencing falling output, falling unemployment, falling incomes and rising unemployment, these conditions best describe a business cycle
Recession
If you make dinner for yourself
Only the market value of ingredients that you purchased this year is added to GDP
The items included in the CPI are
Goods and services consumed by the typical urban household
Recession is best defined as a period during which
Employment, output, and income decline
Cost-push inflation is typically cause by an
Outward shift of the demand curve
If the CPI is 100 when your paycheck is 30,000, and when you get a raise to 60,000 the CPI is 300, your real wage has
Fallen
The CPI market basket
Weighs the goods and services according to the budget of an average urban household
The difference between demand-pull inflation and cost-push inflation is that
Demand-pull inflation is caused by movements of the aggregate demand curve; cost-push inflation is caused by movements of the aggregate supply curve
Improvements in technology shift the per-worker production function downward (false)
False
Labor productivity is measured by
Total output/ total employment (ex. 51,000 U.S.)
An example of an increase in human capital would be
A more educated labor force
What was the result of increased oil prices during the 1970's
Aggregate supply decreased, causing cost-push inflation
Underemployment refers to
People working in jobs that do not fully use their skills
Job losers are people who
Are laid off
The resource whose productivity is most commonly measured is
Labor