Circular Flow and GDP

Multiple Choice

What is the most important concept in all of macroeconomics?

• 
  Unemployment Rate

• Consumer Price Index (CPI)

• Gross Domestic Product (GDP)

• Gross National Product (GNP)

Multiple Choice

What does not count towards GDP?

• Use goods from previous years

• Financial transactions

• Intermediate goods

• All of the above

Multiple Choice

What is the equation for the income approach to calculating GDP?

• GDP = C + I + G + (X - M)

• GDP = Dollar value of all final goods and services produced in the country's border in one year

• National income = Wages + Rents + Interest + Profits

• None of the above