Unit 3.1 Macroeconomics- GDP, Business Cycle, Unemployment

An increase in output (goods and services) over time with full employment

• stable shortage

• stable growth

• stable prices

• final good

An important economic indicator that shows the sum (total value) of all final goods and services produced in an economy.

• Gross Domestic Product

• Full Employment

• Inflation

• Deflation

Consumer Spending is a measurement tool of GDP?

• True

• False

Business Investment is a measurement tool of GDP?

• True

• False

Net exports is a measurement of GDP. How do you calculate net exports?

• Exports plus imports

• Exports minus imports

What is the formula for calculating the GDP of a country?

• C-I-GxNX= GDP

• CxIxGxNX= GDP

• C+I+G+NX= GDP

• C-I+G+NX= GDP

The percentage that GDP grows or shrinks over a period of time shows the present and likely future health of the economy.

• True

• False

The economic indicator that measures the changes in the costs of a "basket" of goods and services typically purchased by consumers.

• Real GDP

• GDP

• Consumer Cost Index

• Consumer Price Index

A rise in prices is called ___________.

• Deflation

• Inflation

• GDP

• Real GDP

A fall in prices is called ___________.

• Deflation

• Inflation

• GDP

• Real GDP