Economics Chapter 4 Review

GDP is an acronym for what?

This is the most important measure used to determine the health of the economy

GDP given in current prices, without adjustment for inflation.

The value of the goods and services produced by an economy in a specific period, adjusted for inflation

Which of the following is not a limitation to GDP?

• These are all limitations

• Does not take into account non material living standards

• The distribution on income is not factored

• It does not take into account quality changes

A measure of the total output of a country that takes (GDP) divided by the number of people in the country.

A rise in per capita GDP signals which of the following?

• growth in the economy

• an increase in productivity

• None of these

• Both of these

The total amount of goods and services in the economy available at all possible price levels.

The amount of goods and services in the economy that will be purchased at all possible price levels.

A period of macroeconomic expansion followed by a period of macroeconomic contraction.