17.1 Review: Money & Econ. Indicators

Which answer below is NOT a function of money?

• Unit of Value

• Store of Value

• Store of Credit

• Medium of Exchange

True or False: American currency used to be backed by gold and silver. You could exchange money at the bank for gold or silver.

• True

• False

When currency isn't backed by gold or silver, what's it called? [Hint: It's what American currency is...]

• Commodity Money
• Fiat Money
• Representative Money
• Digital Money

True or False: We use several economic indicators, like GDP and unemployment rates, to predict if our economy is healthy and on the "right track".

• True

• False

________ measures the value of all the goods & services a nation produces in one year.

• C.P.I.

• G.D.P.

• Inflation

• Consumer Confidence Index

GDP = C + I + G + Xn

What's the letter 'I' stand for?

• Business Spending & Investment

• Imports

• Government Spending

• Consumer Spending

If people and businesses start to spend LESS, GDP will ______.

• go down

• go up

• not change

When consumer & business spending SLOWS DOWN, the government will spend ______ to raise GDP.

• more

• less

When Gross Domestic Product (GDP) INCREASES, that means the economy is doing ____.

• well

• badly

Which of these is NOT included in GDP?

• exports

• used goods

• local government spending

• new homes