Macro Unit 2 Module 10 - 15 Measurement of Economic Performance

In terms of resources, what do households provide for businesses?

• loans
• savings
• labor
• private goods

In terms of resources, what do businesses provide for households?

• income
• sales
• taxes
• private goods

All​ ​of​ ​these​ ​are​ ​components​ ​of​ ​the​ ​expenditure​ ​approach​ ​to​ ​GDP​ ​​EXCEPT

• ​Consumption
• Investment
• Taxes
• Government Spending

The​ ​Consumer​ ​Price​ ​Index​ ​(CPI)​ ​can​ ​be​ ​defined​ ​as

• The​ ​market​ ​value​ ​of​ ​all​ ​final​ ​goods​ ​and​ ​services
• A​ ​measure​ ​of​ ​inflation​ ​based​ ​on​ ​the​ ​cost​ ​of​ ​a​ ​fixed​ ​“market​ ​basket”
• ​The​ ​rise​ ​and​ ​fall​ ​of​ ​economic​ ​activity​ ​relative​ ​to​ ​the​ ​long-term​ ​growth​ ​trend
• ​A​ ​decline​ ​in​ ​total​ ​production​ ​lasting​ ​at​ ​least​ ​two​ ​consecutive​ ​quarters

Changes in real GDP are used to measure

• inflation

• the level of employment

• economic growth

• the distribution of income

• Population was higher than GDP in 2011

• Between 2011 and 2013, GDP grew by 8% whereas population grew by 3%

• There was no growth in GDP per capita between 2013 and 2015

• Money GDP increased by more than real GDP between 2011 and 2015

Structural unemployment is most likely to occur because of

• labour being temporarily unemployed when moving between jobs

• fluctuations in the level of aggregate demand

• the seasonal nature of certain occupations

• long-term changes in the pattern of demand for the products of particular industries

In which one of the following situations could the UK be said to be experiencing a negative output gap?

• Output per worker is lower in the Uk than in the USA

• Real GDP in the UK is less than the economy's productive potential

• UK firms do not have sufficient productive capacity to satisfy customer demand

• The skills possessed by UK workers do not match those which are required by UK employers

The value of the output of all goods and services produced within a country in a year.

• total ouput
• Gross Domestic Product
• national income
• net domestic product

What is the equation of GDP?

• C + I + (X+N)

• C + I + G

• C + I + G + (X-N)

• C + G + U + (X+N)