Intro to Economics Final Exam Study Guide

What do the four gross domestic products stand for

C=

I=

G=

Nx=

Smartphones made in China and purchased in the USA

• Included in GDP (C)

• Included in GDP (I)

• Included in GDP (G)

• Included in GDP (NX)

• Excluded from GDP

 

In contractionary fiscal policy, the government ___ either increases tax rates, decreases spending, or both.

• increases trade

• stops spending

• increases spending

• taxes more than it spends

. 

What does M V= P Y stand for?

• real GDP, money supply, price, velocity

• velocity, price, real GDP, money supply

• money supply, velocity, price, real GDP

• price, money supply, real GDP, velocity

Soda purchased in the MUHS cafeteria

• Included in GDP (C)

• Included in GDP (I)

• Included in GDP (G)

• Included in GDP (NX)

• Excluded from GDP

Which type of inflation is described as worrisome and costly?

Select one:

• high and steady

• low and steady

• low and volatile

• high and volatile

An idea for a future business

• Included in GDP (C)

• Included in GDP (I)

• Included in GDP (G)

• Included in GDP (NX)

• Excluded from GDP

Home purchased by one family from another

• Included in GDP (C)

• Included in GDP (I)

• Included in GDP (G)

• Included in GDP (NX)

• Excluded from GDP

If the government performs expansionary fiscal policy, which curve shifts and in what direction?

Select one:

• The aggregate demand curve shifts right.

• The aggregate supply curve shifts left.

• The aggregate demand curve shifts left

• The aggregate supply curve shifts right.

What is the unemployment rate?