Click on the unemployment rate range in which the U.S. natural unemployment rate is located.
at 5%

For each curve below, apply the correct label.
officially unemployed -> bottom line:

Unemployed plus discouraged and unemployed workers-> top line

Match the component of GDP national income accounting to the correct expenditure.
A farmer buys a new tractor.
Correct label:
Investment

David buys a new car.
Correct label:
Consumption

Lonnie the police officer cashes her paycheck at the end of the week.
Correct label:
Government spending

Jennifer buys toothpaste.
Correct label:
Consumption

Almonds are grown for sale overseas.
Correct label:
Net exports

A family of three purchases a newly built home.
Correct label:
Investment

A service-based economy is less likely to be a source of prosperity than a goods-based economy.
false

Which of the following may be considered as part of the consumer price index?
Correct Answers:
Food
Housing
Transportation

Incorrect Answer(s)
Taxes
Investments

Apply the appropriate label to each situation.
Your mom made a sweater for you for your birthday.
Correct label:
Non-market good

The neighborhood kids sell lemonade when it is hot outside.
Correct label:
Underground economy

Your child is paid $40 to walk your friends' dog while they are on vacation.
Correct label:
Underground economy

Your neighbors grow and eat their own vegetables from their private garden.
Correct label:
Non-market good

Which of the following statements are true about the underground economy?
Correct Answer(s)
It is not possible to accurately measure the size of the underground economy.
It is possible for the underground economy to have an effect on the legitimate economy.
Incorrect Answer(s)
All of the goods and services traded in the underground economy are illegal.
All underground economic activity is harmful to society.

Apply the correct label to each labor force participation rate line.
male-> top line. Female -> bottom line

Why might the prices of some products decrease while others increase?
advances in technology typically cause the price of some goods to decrease over time

How do intermediate goods factor into the calculation of GDP?
Intermediate goods do not factor into GDP; only final goods are counted.