McGowen Final Exam Ch 12/13 2021

What type of GDP is calculated with the current year's prices?

• Nominal GDP
• Real GDP
• GDP per capita

What type of GDP uses another base year's prices in order to make fair comparisons?

• GDP per capita

• Real GDP

• Nominal GDP

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

Expectant parents buy supplies for the nursery.  Would this be included in GDP? 

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry.  Is this included in GDP?

• Yes - Consumer spending
• Yes - Government Spending
• No - Underground Economy 
• No - Non-market activity 

The federal government is expected to spend $3.95 trillion this year.  Will this be counted in GDP?

• YES
• NO

If GDP falls for at least 2 Quarters, it is called.

• Expansion
• Recession
• Clumsy
• Frictional

What term is used to describe an increase in the general price level?

• Deflation
• Monetary policy
• Stagnation
• Inflation

Which best describes GDP?

• Monetary value of all final goods and services produced within a country’s borders in a year
• Personal income and expenses each day
• It is a cycle of things and stuff
• Products shipped from one country to another for purchase

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions
• Business cycles
• Output yo-yos
• Total product oscillations