GDP and Business Cycle

One of the most important tools used to measure the health of an economy is

• inflations

• supply and demand

• equilibrium

• Gross Domestic Product

GDP is the value of

• only goods

• only services

• all final goods and services sold

• immediate goods

To calculate GDP, the government adds up

• government spending

• consumer spending

• investments and (exports-imports)

• all of the above

In 2018, how much did the U.S. produce in final goods and services (GDP)

• 12 billion dollars

• 9 trillion dollars

• 18.5 trillion dollars

• zero

The more GDP increase from one year to the next,

• the worst the economy is doing

• the healthier the economy is.

• has no impact on the health of the economy

• all of the above

If GDP decreases and is negative, the would mean that

• the economy is not healthy

• businesses are selling less.

• there are fewer jobs.

• all of the above

To obtain an accurate picture of how the economy is doing, it is important to use

• nominate GDP

• real-gdp

• gdp plus observations

• all of the above

The government agency that is responsible for calculating GDP is

• the Commerce Department

• the Department of Defense

• The Department of Transportation

• None of the above

By looking at past GDP numbers, we can identify a

• economic contraction

• economic expansion

• recession

• all of the above

During an economic expansion

• GDP is decreasing and people are losing their jobs

• GDP is increasing, businesses are expanding, and consumers are spending more.

• GDP is decreasing and businesses are selling less goods.

• None of the above