Intro to Macro - GDP/Business Cycle

GDP stands for which of the following?

• Gross Domestic Product

• Gross Demand Product

• General Domestic Product

• General Demand Product

What is the difference between real GDP and nominal GDP?

• Real GDP takes into account inflation

• Real GDP takes into account population

• Real GDP takes into account exchange rates

• Real GDP takes into account unemployment

What is the difference between real GDP per capita and real GDP?

• Real GDP per capita takes into account population

• Real GDP per capita takes into unemployment

• Real GDP per capita takes into exchange rates

• Real GDP per capita takes into account savings

On a business cycle graph, what is the top point of the curve where there is maximum level of GDP?

• Boom/Peak

• Bust/Trough/Slump

• Recession

• Recovery

On a business cycle graph, what is the lowest point of the curve where there is the lowest level of GDP?

• Peak

• Bust/Trough/Slump

• Recession

• Recovery

On a business cycle graph, what is the phase called when there is a downward slope and GDP is falling?

• Peak

• Trough

• Slump

• Recession

• Shock

On a business cycle graph, what is the phase called when there is an upward slope and GDP is increasing?

• Recession

• Shock

• Bust

• Recovery

If GDP of the economy grows, what is MOST LIKELY to happen to sales and profitability of a business in the economy?

• Increase

• Decrease

• Stay the same

If GDP of the economy falls and decreases, what is MOST LIKELY to happen to production and recruitment at a business in the economy?

• Increase

• Decrease

• Stay the same

If GDP of the economy grows, what is MOST LIKELY to happen to investment by a business in the economy?

• Increase

• Decrease

• Stay the same