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
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
