Macroeconomics Review

Which of the following is NOT an economic goal?

• Printing Money

• Low Unemployment

• Stable Prices

• Economic Growth

Which of the following would be the BEST measure of growth in the economy from year to year?

• Market Basket

• Consumer Price Index

• Gross Domestic Product

• Unemployment Rate

Which of the following is the correct formula for GDP?

• (C + I) + (G + Xn)

• C + I + G/Xn

• C x I x G x Xn

• C + I + G + Xn

Which economic indicator measure whether an economy is meeting the goal of low unemployment?

• Labor Force

• Gross Domestic Product

• Consumer Price Index

• Unemployment Rate

Which variable accounts for 75% - 80% of GDP?

• Consumer Spending

• Business Investments

• Government Spending

• Net Exports

A market basket is generally used to

• determine the total number of real gross domestic product

• advertise new products for companies

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

• put things in while you walk around the store

GDP that DOES account for inflation/deflation is best known as

• Actual GDP

• Real GDP

• Nominal GDP

• National GDP

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

• the consumer price index has increased

• unemployment will automatically decrease

• imports into the US have increased

• the purchasing power of the dollar increases

Someone who is fired from their job is an example of

• Frictional unemployment

• Structural unemployment

• Cyclical unemployment

• Seasonal unemployment

Comparing real GDP between two consecutive years is MOST useful in determining...

• equity

• exchange rates

• equilibrium price

• economic growth/decline