ECON 1500 Exam 2025 With 100% Correct Answers

ECON 1500 Exam 2025 With 100%
Correct Answers

classical economics - CORRECT ANSWER✔✔-focus on the long-run

-focus on trends

-focus on supply and productivity

-don't care about demand

-say's law (supply creates its own demand)

-labor markets are the same as wheat markets

-laissez faire



Keynesian economics - CORRECT ANSWER✔✔-focus on short-run

-demand matters

-focus on up and down movement not trends

-the labor market is not like the wheat market

-unemployment is a problem

-laissez fair won't always work

-big government can help



employed - CORRECT ANSWER✔✔you want a job and you have a job



unemployed - CORRECT ANSWER✔✔-you want a job but you don't have a job

-you are in the labor force (aka you are an adult and you want a job)



structural unemployment - CORRECT ANSWER✔✔wrong skills

, frictional unemployment - CORRECT ANSWER✔✔matching time, waiting time



cyclical unemployment - CORRECT ANSWER✔✔happens because of recessions



natural types of unemployment - CORRECT ANSWER✔✔-structural

-frictional



target unemployment - CORRECT ANSWER✔✔structural + frictional



unemployment rate - CORRECT ANSWER✔✔unemployed/labor force



labor force - CORRECT ANSWER✔✔employed + unemployed



labor force participation rate - CORRECT ANSWER✔✔labor force / population (or # in chosen
demographic group)



stock - CORRECT ANSWER✔✔a given amount at a fixed point in time



flow - CORRECT ANSWER✔✔a given amount over a period of time



GDP - CORRECT ANSWER✔✔market value of all final goods and services produced in a nation
during a given period of time



GDP: flow or stock? - CORRECT ANSWER✔✔flow



GDP equation - CORRECT ANSWER✔✔C = consumer spending