GDP and Business Cycles

You spending money on food is an example of which part of the GDP equation?

• Consumption

• Investment

• Government Spending

• Net Exports

Galena Park ISD building a new GP Elementary school is which part of the GDP formula?

• Consumption

• Investment

• Government Spending

• Net Exports

A man who owns a lawn service takes his lawn mowers to a shop to have the blades sharpened. This is an example of which part of the GDP equation?

• Consumption

• Investment

• Government Spending

• Net Exports

The United States loves French wine. Because of this the US imports millions of bottles per year. This is an example of which part of the GDP equation?

• Consumption

• Investment

• Government Spending

• Net Exports

GDP is a measure of what?

• Total economic output from within a country

• The wealth of business owners

• The number of people in a country making money

• The amount of goods US companies produce

What is GDP per capita?

• Gross Domestic Product divided by states

• Gross Domestic Product divided by population

• Gross Domestic Product represented in dollars

• Gross Dollars Per person per state

Why is GDP per capita more important than just GDP?

• It reflects the GDP for this year not the past

• It reflects what GDP might be next year

• It reflects the amount of production per person

• It reflects the amount of production if the US had the same population as China

Which of the following items are not included in GDP?

• New Car

• Waitress Tips

• Family groceries

• GPISD building a school

Which of the following is not included in GDP?

• Nike made clothing from Malaysia

• School Supplies

• Rent or Mortgage (housing costs)

• Paying for your school lunch

Using the formula for GDP C + I + G + Xn, what happens to GDP if Government spending increases?

• GDP decreases

• GDP increases

• No change to GDP

• Indeterminate