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if consumers become pessimistic, the economy is likely to experience a

/Type /Pages We can expect that, in the future,Refer to the figures.


c. Business optimism decreases. stream (a) An increase in consumer confidence or business confidence can shift AD to the right, from AD 0 to AD 1.When AD shifts to the right, the new equilibrium (E 1) will have a higher quantity of output and also a higher price level compared with the original equilibrium (E 0).In this example, the new equilibrium (E 1) is also closer to potential GDP. Since all voluntary economic exchanges require each party to believe it benefits in some way, even psychologically, and because every consumer and producer has competitors to contend with, the overall The first mechanism is initiated through competitive bidding for various goods and services. These include white papers, government data, original reporting, and interviews with industry experts. As a result,the official unemployment rate will remain unchanged.After the Great Recession of 2007-09 ended, real GDP increasedAn unexpected increase in total spending will cause an increase in GDPWhich of the following is the correct way to calculate the unemployment rate?Kevin has lost his job in an automobile plant because the company switched to robots for its welding step in the assembly line. Then the family's living standardMakes a country's output per person rise at a compounded rateAdjusting GDP figures for the fact that prices are much lower in some countries than in othersAt the core of understanding economic growth is the idea that to raise living standards over time, an economy mustResources are devoted toward increasing future outputOccurs when current spending is less than current incomesThe amount of investment is ultimately limited by the amount ofIf consumers become pessimistic, the economy is likely to experience aEconomists believe that most short-run fluctuationsBecause prices are sticky, positive demand shock will lead toOccur when one firm lowers its price and rival firms react by lowering their pricesWhich of the following markets is most likely to exhibit extremely flexible pricesEconomists need different models of the economy becauseThe economy behaves differently depending on how much time has passed after a demand shockIn macroeconomic models, prices are assumed to be completely inflexible inAll final goods and services produced in an economy in a given yearAn example of final goods in national income accounts would beMoney spent on the purchase of a new house is included in the GDP as a part ofWhich would be considered an investment according to economists?When gross private domestic investment exceeds depreciation, it can be concluded thatNational income is the sum of employee compensation, profits, and the following items, exceptCorporate profits" in the national income accounts consists of the following, except"Net foreign factor income" in the national income accounts refers to the difference betweenThe income Americans gain from supplying resources abroad and the income that foreigners earn by supplying resources in the U.SThe total income earned through the use of resources, plus taxes on production and on imports, equals:That portion of corporate profits which is included in personal income is:If the price index is rising over a period of time, then the real GDP in yearsPrior to the base year will be larger than the nominal GDPReal GDP results from adjusting for changes in the price levelThe service a homeowner performs when she mows her yard is not included in GDP becauseGDP tends to underestimate the productive activity in the economy because it excludes the value of output from:Which of the following is a measure of economic growth that is most useful for measuring geopolitical preeminence or military potential?Which of the following is a measure of economic growth that is most useful for comparing living standards?Economic growth in the U.S. since 1950 has been characterized by:An average growth rate in real GDP that is faster than the growth rate of the populationEfficient financial institutions foster the flow ofBefore the Industrial Revolution, living standards in the world:Society can increase its output and income by increasing basically one or both of two factorsIts resources and the productivity of the resourcesf the production possibilities curve for an economy is at CD but the economy is operating at point X, the reasons are most likely to be because of:Unemployment and inefficient allocation of resourcesWhich of the following is the most likely cause for a shift in the production possibilities curve from AB to CDAn increase in the quantity and quality of labor resourcesWhich of the following is the single most important source of U.S. economic growth?The factor accounting for the largest increase in the productivity of labor in the United States has been:Increasing returns would be a situation where a firm increases its workforce and other inputs by:One major economic benefit of global competition isThe rapid productivity growth experienced in 1995-2012:Is still debated among many economists as to whether it represents a permanent shift in the economyOne of the main arguments against further growth for industrialized nations focuses on the problem of:The phases of the business cycle from points A to D are, respectively:Which of the following groups declares the start and end of recessions in the U.S.?The Business Cycle Dating Committee of the National Bureau of Economic ResearchSome economists prefer to use the term business fluctuations rather than business cycles to describe the historical growth record in the United States becauseThe Great Recession that started in 2007 was triggered by shocks in which of the following economic sectors?Full employment" refers to the situation when there is:Refer to the above information.

The total contribution to GDP of this series of transactions isThe agency responsible for compiling the National Income Product Accounts for the U.S. economy is theWhat is the difference between national income and personal income?If personal income exceeds national income in a particular year, we can conclude thatTransfer payments exceed the sum of Social Security contributions, corporate income taxes, and undistributed corporate profitsConsumption of fixed capital (depreciation) can be determined bythe purchase of 100 shares of AT&T by a retired business executiveSuppose nominal GDP was $360 billion in 1990 and $450 billion in 2000.   Every one of us is a consumer.

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