Gdp cpi unemployment review
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GDP, CPI, Unemployment Review. Chaps. 23, 24 and 28. Clickers!. Hit GO -4-1-GO. 1. What does GDP measure?. Inflation Industrial production The final value of all goods produced in an economy Imports - exports. 10. 2. What measures inflation?. Real GDP CPI GDP deflator Both 2 and 3

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GDP, CPI, Unemployment Review

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Gdp cpi unemployment review

GDP, CPI, Unemployment Review

Chaps. 23, 24 and 28


Clickers

Clickers!

Hit GO -4-1-GO


1 what does gdp measure

1. What does GDP measure?

  • Inflation

  • Industrial production

  • The final value of all goods produced in an economy

  • Imports - exports

10


2 what measures inflation

2. What measures inflation?

  • Real GDP

  • CPI

  • GDP deflator

  • Both 2 and 3

  • All of the above

10


3 gdp c g i net exports in our current economy which factor contributes more to the us gdp

3. GDP = C+G+I+Net ExportsIn our current economy, which factor contributes more to the US GDP?

  • C

  • G

  • I

  • Net X

10


Gdp cpi unemployment review

4. How would this transaction affect US GDP in 2014?Sale of a $40,000 new car produced in 2013, but sold in 2014.

  • C =+40,000

  • I = +40,000

  • No affect in 2014(C= + 40k, I= -40k)

  • G= +40k

10


5 how would this transaction affect us gdp in 2014 you buy a 1000 college savings bond at your bank

5. How would this transaction affect US GDP in 2014?You buy a $1000 college savings bond at your bank.

  • C =+1000

  • I = +1000

  • No affect in 2014(nothing produced)

  • C=+1000, I=-1000

10


6 how would this transaction affect us gdp in 2014 you buy a new schwinn american made bike for 500

6. How would this transaction affect US GDP in 2014?You buy a new Schwinn (American-made) bike for $500.

  • C =+500

  • I = +500

  • No affect in 2014

  • Net Export= 5000

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Gdp cpi unemployment review

7. How would this transaction affect US GDP in 2014?A new Police station is built in your town for $2 million

  • C =+2 million

  • I = +2 million

  • G= + 2 million

  • No Affect in 2014

10


Gdp cpi unemployment review

8. This definition accurately defines which of the following?A measure of price level calculated as the ratio of nominal GDP to real GDP multiplied by 100

  • CPI

  • GDP deflator

  • Real GDP

  • CPI deflator

10


Gdp cpi unemployment review

9. This definition accurately defines which of the following?The production of goods and services valued at current year prices

  • Recession

  • GDP deflator

  • Real GDP

  • Nominal GDP

10


10 this definition accurately defines which of the following period of decline in the gdp

10. This definition accurately defines which of the following?Period of decline in the GDP.

  • Recession

  • Unemployment

  • Consumption

  • Inflation

10


11 the cpi increased from 140 in 1995 to 150 in 1996 what does that tell you

11. The CPI increased from 140 in 1995 to 150 in 1996. What does that tell you?

  • We are in a recession

  • We are experiencing inflation

  • Our economy is growing

  • Consumers are buying more stuff

10


12 the cpi in 1995 100 the cpi in 2014 200 what is the value of 1000 today measured in 1995 terms

12. The CPI in 1995 = 100, the CPI in 2014 = 200, what is the value of $1000 today, measured in 1995 terms?

  • $100

  • $500

  • $1000

  • $2000

10


Gdp cpi unemployment review

12. Your boss surprise you with a 10% raise. The CPI rose from 100 to 110. What is your real wage increase?

  • 0%

  • 10%

  • -10%

  • Can’t tell using the facts given.

10


Gdp cpi unemployment review

13. You earned a real rate of interest of 10%, while inflation also increased by 10%. What must have been your nominal rate of return?

  • 0%

  • 10%

  • 20%

  • Can’t tell using the facts given.

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14 if prices are rising then

14. If prices are rising, then

1. Real GDP will be less than nominal GDP

  • Real GDP will be greater than nominal GDP

  • Real GDP will always be equal to nominal

  • Can’t tell using the facts given.

10


14 which person will be most affected by periods of high inflation

14. Which person will be most affected by periods of high inflation?

1. A person earning real wage increases

2. A person who has borrowed $ at fixed rates of interest

3. A person who has lent $ at floating rates.

4. A person who has saved money under his mattress.

10


Gdp cpi unemployment review

15.The following definition correctly matches which of the following words?The quantities of each item purchased by a typical consumer.

1. CPI

2. PPI

3. Cost of Living

4. Basket (of goods and services)

10


Gdp cpi unemployment review

16.The following definition correctly matches which of the following words?The ratio of the value of the consumer basket to the value of the basket in the base year times 100.

1. CPI

2. PPI

3. Cost of Living

4. Basket (of goods and services)

10


Gdp cpi unemployment review

17.The following definition correctly matches which of the following words?The percentage change in the price index

1. Standard of Living

2. Cost of living adjustment

3. Nominal Interest rate

4. Inflation

10


Gdp cpi unemployment review

18.The following definition correctly matches which of the following words?The inability of the CPI to account for when consumers switch to cheaper products

1. Substitution bias

2. Efficiency wages

3. Cost of living adjustment

4. Reserve rate

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Gdp cpi unemployment review

19. The CPI increases from 150 to 165. What percentage increase do you need in your nominal wages to avoid suffering a decrease in real wages?

1. 1%

2. 10%

3. 15%

4. No way to tell

10


Gdp cpi unemployment review

19. The CPI increases from 150 to 165. What percentage increase do you need in your nominal wages to avoid suffering a decrease in real wages?

1. 1%

2. 10%

3. 15%

4. No way to tell

10


Gdp cpi unemployment review

20. If you lend money for 1 year at a 4% nominal rate of interest, and the CPI increases from 100 to 101, what is your real rate of interest earned on this investment?

1. 1%

2. 2%

3. 3%

4. 4%

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Gdp cpi unemployment review

21. You borrow money for 30 years at a 4% fixed rate of interest to buy a house. The CPI increases at 4% per year for that entire period. Has this investment resulted in a positive real rate of return?

1. yes

2. no, you lost money

3. no, but you didn’t lose any money either

4. Impossible to tell, because homes are not part of CPI.

10


22 unemployment due to the time it takes to find another job is

22. Unemployment due to the time it takes to find another job is

1. Cyclical unemployment

2. Structural unemployment

3. Natural unemployment

4. Frictional unemployment

10


23 unemployment caused when jobs move overseas due to a change in the economy is called

23. Unemployment caused when jobs move overseas due to a change in the economy is called

1. Cyclical unemployment

2. Structural unemployment

3. Natural unemployment

4. Frictional unemployment

10


24 economists would say our labor force is fully employed if the unemployment rate is equal to

24. Economists would say our labor force is “fully employed” if the unemployment rate is equal to

1. Natural unemployment rate

2. Cyclical unemployment rate

3. The labor force participation rate

4. The frictional unemployment rate

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Gdp cpi unemployment review

24. If the unemployment rate is greater than the natural rate of unemployment, economists consider our economy to be experiencing…

1. Structural unemployment

2. Cyclical unemployment

3. A depression

4. Frictional unemployment

10


Gdp cpi unemployment review

25. Labor force = 50,000total adult population = 100,000total unemployed = 10,000What is the labor force participation rate?

1. 40%

2. 50%

3. 60%

4. 70%

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Gdp cpi unemployment review

26. Labor force = 50,000total adult population = 100,000total unemployed = 10,000What is the unemployment rate?

1. 10%

2. 20%

3. 30%

4. 40%

10


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