Measuring the Economy

To keep track of inflation, the government uses the

• gross national product.

• consumer price index.

• real GDP.

• NYSE.

The economy grows

• at a constant rate.

• at a constant increase.

• at a constant decrease.

• in alternating periods of growth and decline.

Which explanation best explains the effects of inflation?

• Consumers have more products to choose from.

• Inflation erodes (take away from) the purchasing power of the dollar.

• Inflation results in lower prices.

• Demand increases because prices are higher.

GDP equals the value of all

• final goods and services produced.

• services and only services produced.

• goods and only goods produced.

• final goods and services consumed by households.

What is inflation?

• decrease in overall price level of goods and services in an economy

• the price of a good remains stable

• how many people are working and not working

• increase in overall price level of goods and services in an economy

What does the unemployment rate measure?

• the percentage of those who are employed

• the percentage of those without work

• the percentage of how much prices have increased

• the percentage of those who have healthcare

• the percentage of those who have education

What does "per capita" mean?

• Per person

• Per household

• Per capital

• Per country

What is GDP Per Capita?

• Dividing a country's GDP with their total population

• Dividing a country's GDP with their inflation rate

• Adding a country's GDP to their unemployment rate

• Adding a country's GDP to their inflation rate

The formula for GDP is

• C+X+G+Y

• C-I-G-Xn

• C+I+G+Xn

• I+G-Xn-Xi

When you adjust GDP to account for inflation

• real gdp

• fake gpd

• nominal gdp

• your momma's gdp