GDP & Inflation

Front

What is GDP?

Back

Gross Domestic Product

Front

GDP measures the:

Back

Total market value of all final goods and services produced in an economy in a given year.

Front

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

Back

investment

Front

What type of GDP is calculated with the current year's prices? Options: Nominal GDP, Real GDP, GDP per capita

Back

Nominal GDP

Front

High levels of GDP per capita indicate...

Back

Higher standard of living

Front

Tanks and roads belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

Back

Government Expenditures

Front

What is the total value of all final goods and services produced in the economy calculated using the prices of a selected base year?

Back

Real GDP

Front

Who is most likely to be hurt by inflation? Options: someone who borrowed money, a retiree on a fixed income, a business owner, the U.S. government

Back

a retiree on a fixed income

Front

Is a used car counted in the current year's GDP?

Back

No

Front

Which of these is a business investment that would be counted in GDP? cheese purchased by a restaurant, nails purchased by a construction company, a blow dryer purchased by a beauty salon, fuel purchased by a mowing company

Back

a blow dryer purchased by a beauty salon