Term
| The assumption of continuous market clearing means that |
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Definition
at any given instant, buyers can buy all that they want and sellers can sell all
that they want at the going price. |
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Term
| Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the |
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Definition
| overall upward trend interrupted by a large downturn in the 1930s. |
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Term
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Definition
the value of intermediate goods is included in the market price of the final
goods. |
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Term
| If the number of employed increases while the number of unemployed does not change, the unemployment rate |
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Definition
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Term
| Assume that a firm buys all the parts that it puts into an automobile for $10,000, pays its workers $10,000 to fabricate the automobile, and sells the automobile for $22,000. In this case, the value added by the automobile company is |
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Definition
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Term
| Prices of items included in the CPI are |
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Definition
| weighted according to quantity of the item purchased by the typical household |
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Term
| The investment component of GDP includes all of the following except |
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Definition
| purchases of corporate stock |
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Term
| A farmer grows wheat and sells it to a miller for $1; the miller turns the wheat into flour and sells it to a baker for $3; the baker uses the flour to make bread and sells the bread for $6. The value added by the miller is |
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Definition
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Term
| Which of the following is a stock variable? |
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Definition
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Term
| Disposable personal income |
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Definition
is computed by subtracting personal tax and nontax payments from personal
income. |
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Term
| A fixed-weight price index like the CPI ______ the change in the cost of living because it ______ take into account that people can substitute less expensive goods for ones that have become more expensive |
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Definition
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Term
| The economic statistic used to measure the level of prices is |
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Definition
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Term
| The largest component of national income is |
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Definition
| compensation of employees |
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Term
| Assume that the market basket of goods and services purchased in 2004 by the average family in the United States costs $14,000 in 2004 prices, whereas the same basket costs $21,000 in 2009 prices. However, the basket of goods and services actually purchased by the average family in 2009 costs $20,000 in 2009 prices, whereas this same basket would have cost $15,000 in 2004 prices. Given these data, a Paasche index for 2009 using 2004 prices would be |
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Definition
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Term
| The labor force equals the |
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Definition
| number of employed and unemployed individuals |
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Term
| All of the following transactions that took place in 2009 would be included in GDP for 2009 except the purchase of a |
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Definition
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Term
| If the adult population equals 250 million, of which 145 million are employed and 5 million are unemployed, the labor force participation rate equals ______ percent. |
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Definition
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Term
| In a simple graphical model of the supply and demand for pizza with the price of pizza measured vertically and the quantity of pizza measured horizontally |
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Definition
| the supply curve slopes upward and to the right. |
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Term
| A graph of the unemployment rate of the United States over the twentieth century shows: |
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Definition
| rates of unemployment always greater than zero with substantial variations from year to year |
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Term
| A measure of how fast prices are rising is called the |
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Definition
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