The Business Cycle

GDP is the value of

• only goods

• only services

• all final goods and services sold

• immediate goods

In 2004, how much did the U.S. produce in final goods and services (GDP)

• 16 Billion Dollars

• 16 Trillion Dollars

• 12 Billion Dollars

• 12 Trillion Dollars

If GDP decreases, this would mean that

• The economy is NOT healthy

• Businesses are selling less

• There are fewer jobs

• All of the above

The government agency that is responsible for calculating GDP is

• The Department of Defense

• The Department of Transportation

• The Commerce Department

• None of the above

One of the most important tools used to measure the health of an economy is

• Inflation

• Equilibrium

• Gross Domestic Product

• Supply and Demand

To calculate GDP, the government adds up

• government spending

• consumer spending

• investments (exports-imports)

• all of the above

The more GDP increases from one year to the next,

• The worst the economy is doing

• the healthier the economy is

• has no impact on the health of the economy

• all of the above

To obtain an accurate picture of how the economy is doing, it is important to use

• Real GDP

• Nominal GDP

• GDP plus observations

• all of the above

By looking at past GDP numbers, we can identify a

• Economic Contraction

• Economic Expansion

• A Business Cycle

• All of the above

During an economic expansion

• GDP is decreasing and people are losing their jobs

• GDP is increasing and wages are increasing

• GDP is decreasing and businesses are selling more goods

• None of the Above