Exam 17: Measuring Economic Activity: GDP and Unemployment

Data for an economy shows that the unemployment rate is 10 percent, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. How many people are unemployed in this economy?

Which of the following would increase the investment component of U.S. GDP?

Data for an economy show that the unemployment rate is 6 percent, the participation rate is 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the labor force in this economy?

Total spending on final goods and services in an economy must equal total:

Which of the following expenditures would increase the investment component of U.S. GDP?

If Bountiful Orchard grows $100,000 worth of peaches, sells $50,000 worth of peaches to consumers and uses the rest to make jam that is sold to consumers for $100,000, Bountiful Orchard's contribution to GDP is:

Government purchases include all of the following except:

GDP would be a better measure of economic well-being if it included:

The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was ________ months in Jekyll and ________ months in Hyde.

Based on the information in the table, what is the unemployment rate?   Population 16 and older 1,000,000 Participation Rate 80\% Errployed Workers 720,000

In which of the following situations would GDP not change?

Which of the following would increase the consumption component of U.S. GDP?

Which of the following would increase the government purchases component of U.S. GDP?

Investment spending includes spending on:

The government purchases component of GDP includes:

Capital goods are treated as ________ goods and, therefore, are ________ GDP.

The market value of all domestically produced final goods and services are also equal to the total amount spent by ________ less spending on imported goods and services.

The following provides data for an economy in a certain year.     Given the data, compute the value of GDP.

A period of time in which an individual is continuously unemployed is called an unemployment

Final goods and services are ________ production and ________ counted in GDP.