Economic Indicators

What is the definition for GDP?

• The market value of all final goods and services produced in a nation during a period of time, usually a year.

• The increase of general prices over time.

• When people do not have jobs and are actively looking for one.

What is the definition for inflation?

• The market value of all final goods and services produced in a nation during a period of time, usually a year.

• The increase of general prices over time.

• When people do not have jobs and are actively looking for one.

What is the definition for unemployment?

• The market value of all final goods and services produced in a nation during a period of time, usually a year.

• The increase of general prices over time.

• When people do not have jobs and are actively looking for one.

What is the ideal (healthy) rate for GDP?

• 2-4%

• Below 3%

• Below 5%

What is the ideal (healthy) rate for Inflation?

• 2-4%

• Below 3%

• Below 5%

What is the ideal (healthy) rate for Unemployment?

• 2-4%

• Below 3%

• Below 5%

How is GDP calculated?

• C + I + G + (X - M)

• C - I - G - (X + M)

• C + I + G (X - M)

• I + G + C (M - X)

What letter in the GDP equation has the largest impact on our economic growth?

• C (Consumer Spending)

• I (Business Investments)

• G (Government Spending)

• X (Exports)

What type of inflation is represented here?

Scenario- Apple releases a new iPhone that is foldable causing the popularity of iPhones to increase. To capitalize on this opportunity, Apple decides to increase their prices.

• Demand-Pull Inflation

• Cost-Push Inflation

What type of inflation is represented here?

Scenario- The price of steel increases, so contractors increase the price of new homes to make up for the increase in resource costs.

• Demand-Pull Inflation

• Cost-Push Inflation