ECON 1500 Exam 2 Questions With Correct Answers

ECON 1500 Exam 2 Questions With Correct
Answers

classical economics - CORRECT ANSWER✔✔--focus on the long-run
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-focus on trends
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-focus on supply and productivity
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-don't care about demand
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-say's law (supply creates its own demand)
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-labor markets are the same as wheat markets
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-laissez faire |




Keynesian economics - CORRECT ANSWER✔✔--focus on short-run
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-demand matters |




-focus on up and down movement not trends
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-the labor market is not like the wheat market
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-unemployment is a problem | | |




-laissez fair won't always work
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-big government can help
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employed - CORRECT ANSWER✔✔-you want a job and you have a job
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unemployed - CORRECT ANSWER✔✔--you want a job but you don't have a job
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, -you are in the labor force (aka you are an adult and you want a job)
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structural unemployment - CORRECT ANSWER✔✔-wrong skills
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frictional unemployment - CORRECT ANSWER✔✔-matching time, waiting time
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cyclical unemployment - CORRECT ANSWER✔✔-happens because of recessions
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natural types of unemployment - CORRECT ANSWER✔✔--structural
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-frictional


target unemployment - CORRECT ANSWER✔✔-structural + frictional
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unemployment rate - CORRECT ANSWER✔✔-unemployed/labor force | | | | |




labor force - CORRECT ANSWER✔✔-employed + unemployed
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labor force participation rate - CORRECT ANSWER✔✔-labor force / population (or
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|# in chosen demographic group)
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stock - CORRECT ANSWER✔✔-a given amount at a fixed point in time
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flow - CORRECT ANSWER✔✔-a given amount over a period of time
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