GDP, Poverty, and Business cycles

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

GDP is calculated by

• adding up the cost of goods used in producing the item
• subtracting all costs from total revenue
• adding consumption + investment +government spending+ (exports sold - imports bought)

Which of the following best defines “unemployment”?

• When a person is not earning a wage.

• When a person is actively looking for a job, but is unable to find one.

• When a person is actively working, but not earning a wage or salary.

• When a person is earning a wage while working at a regular job.

Which of the following best defines “inflation”?

• A decrease in prices and an increase in the value of money.

• A sudden decrease in prices and an increase in the value of money.

• An extraordinary increase in prices that often causes an economic failure.

• An increase in prices and a decrease in the value of money.