ECON 1500 Exam 2 Questions and Correct Answers – Verified 2024/2025 A+

ECON 1500 Exam 2 questions and answers
2024\2025 A+ Grade

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