ECON 200 UOFA EXAM 3 | QUESTIONS & ANSWERS | VERIFIED
BY EXPERTS | SUCCESS GUARANTEED !!
GDP - ANSWER Market value, final goods and services, produced within a specific period of time
is incorporated into..
Structural - ANSWER caused by changed in the industrial make-up of the economy; linked with
technology.
Frictional - ANSWER caused by the delay in matching available jobs & workers.
Cyclical - ANSWER caused by an economic downturn; no jobs available
Labor force equation - ANSWER employed + unemployed
Unemployment rate: - ANSWER (unemployed/labor force) x 100
full employment - ANSWER If there is no cyclical unemployment, than ____ is taking place
Recession - ANSWER If cyclical unemployment is > 0
Economic boom - ANSWER actual unemployment rate is less than the natural rate. This happens
temporarily when the economy is expanding beyond its long-run capabilities
Labor force participation rate - ANSWER (labor force/working age population) x 100
Inflation - ANSWER General rise in the average price level
, Consumer Price Index - ANSWER measurement of the price level based on the consumption
patterns of a typical consumer.
cost of inflation - ANSWER Uncertainity
cost of inflation - ANSWER Signal extraction problem: is an increase in price a result of an
increase in demand or
inflation?
cost of inflation - ANSWER Menu costs: costs of changing prices
cost of inflation - ANSWER Money illusion: Austin Powers clip
Cost push - ANSWER supply side
Demand pull - ANSWER demand side
Long-run economic growth - ANSWER is the key to raising the average standard of living.
Long-run world per capita GDP - ANSWER looks like a hockey stick; flat to the late 18th century,
then sharp rise.
Rule of 70 - ANSWER (70/average growth rate) 10% growth per year: 7 years for GDP to double
Key of economic growth - ANSWER capital
BY EXPERTS | SUCCESS GUARANTEED !!
GDP - ANSWER Market value, final goods and services, produced within a specific period of time
is incorporated into..
Structural - ANSWER caused by changed in the industrial make-up of the economy; linked with
technology.
Frictional - ANSWER caused by the delay in matching available jobs & workers.
Cyclical - ANSWER caused by an economic downturn; no jobs available
Labor force equation - ANSWER employed + unemployed
Unemployment rate: - ANSWER (unemployed/labor force) x 100
full employment - ANSWER If there is no cyclical unemployment, than ____ is taking place
Recession - ANSWER If cyclical unemployment is > 0
Economic boom - ANSWER actual unemployment rate is less than the natural rate. This happens
temporarily when the economy is expanding beyond its long-run capabilities
Labor force participation rate - ANSWER (labor force/working age population) x 100
Inflation - ANSWER General rise in the average price level
, Consumer Price Index - ANSWER measurement of the price level based on the consumption
patterns of a typical consumer.
cost of inflation - ANSWER Uncertainity
cost of inflation - ANSWER Signal extraction problem: is an increase in price a result of an
increase in demand or
inflation?
cost of inflation - ANSWER Menu costs: costs of changing prices
cost of inflation - ANSWER Money illusion: Austin Powers clip
Cost push - ANSWER supply side
Demand pull - ANSWER demand side
Long-run economic growth - ANSWER is the key to raising the average standard of living.
Long-run world per capita GDP - ANSWER looks like a hockey stick; flat to the late 18th century,
then sharp rise.
Rule of 70 - ANSWER (70/average growth rate) 10% growth per year: 7 years for GDP to double
Key of economic growth - ANSWER capital
