GDP, Business Cycles, Inflation, and Unemployment

GDP, or gross domestic product, measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Inflation measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Unemployment measures...

• the value of all final goods and services produced

• an increase in the general price level

• the percentage of people looking for work that can't find it

• the economic freedom an economy offers

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is a recession, or contraction?

• A

• B

• C

• D

Which of the following is a trough?

• A

• B

• C

• D

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

Nominal GDP - _____ = Real GDP

• Inflation

• Unemployment

• Imports

• Exports

GDP divided by ______ = GDP per capita

• population

• income

• wealth

• production

When calculating GDP, which of the following gets subtracted out?

• Consumer spending

• Business investment spending

• Imports

• Government spending