Unit 3- Macroeconomics

Which action causes US GDP to increase?

• The US exports machinery to Japan

• The US imports Japanese cars

• Japan buys US Government Bonds

• Japan sells Japanese bonds to the US

Spending by households to purchase goods and services is called

• Investment

• Public-sector spending

• Exports

• Consumption

Gross Domestic Product is a method for calculating how much a country produces by adding which four spending categories?

• Wages, Rents, Interest, Dividends

• Consumption, Investment, Government, Business Revenues

• Consumption, Investment, Government, Net Exports

• Consumption, Interest Rates, Government, Net Exports

Macroeconomics is the study of

• How a nation or nations make decisions based on economic factors

• How individuals and businesses make economic decisions

• How unemployment effects individuals

• How the circular flow model works

To calculate the unemployment rate an economist would need the total number of unemployed people and which other number?

• The total number of discouraged workers

• The total number of transactions in the resource market

• The number of people in the labor force

• The inflation rate

When there is inflation in an economy which is always true?

• The consumer price index has increased.

• The purchasing power of the dollar increases.

• Unemployment will automatically decrease

• Exports to other countries increases

Finding the amount of Real Gross Domestic Product produced at all possible price levels will determine

• Aggregate supply

• Inflation

• Growth

• Aggregated demand

A market basket is generally used to

• Put things in while you walk around the store

• Compare prices of goods between years to calculate the consumer price index

• Determine the total amount of real gross domestic product.

• Advertise new products for companies.

Use the chart above to answer the question below.

A government decision to increase taxes is most related to which combination of events Consumption, Aggregate Demand and GDP?

• Option A

• Option B

• Option C

• Option D

Use the scenarios to answer the question

Which two scenarios are most negatively affected by unanticipated inflation?

• Scenario 1

• Scenario 2

• Scenario 3

• Scenario 4

• Scenario 5