Week 1 Review Trade Cycle

Which of the following best describes GDP?

• The total real value of all physical goods made in a country

• The total wages of all workers in a country added up

• The total market value of all products made in a country in one year

• The number of workers in a country

Which of the following IS counted in GDP?

• The market value of services produced by an economy

• The market value of black market goods produced in an economy

• The value of volunteer goods produced in an economy

• The future cost of environmental pollution produced by an economy

GDP stands for ...

• Gross Developed Potential

• Gainfully Developed Production

• Gross Domestic Product

• General Development Potential

Australia's GDP in 2018 is closest to

• $US 1.3 million

• $US 1.3 billion

• $US 1.3 trillion

• $US 1.3 quadrillion

Economic growth is the annual change in a country's

• GDP

• Unemployment Rate

• Inflation Rate

• Exports

Australia aims to maintain an economi growth rate...

• Around 2%

• Between 2.5% - 3.5%

• Above 4%

• That is as high as possible

The main problem associated with HIGH economic growth is ...

• High Unemployment

• High Aggregate Demand

• High Inflation

• High Exchange Rate

The main problem associated with LOW economic growth is ...

• High Unemployment

• High Inflation Rate

• High Wages

• High Imports

Aggregate Demand =

• Consumer Spending

• Investment + Government Spending

• Exports - Imports

• All of the above combined

The level of aggregate demand is usually equal to ...

• The level of exports

• The level of imports

• The level of output (production)

• The level of unemployment