Unit 3 Quiz

Using the graph above, which macroeconomic goal has an economy that moved from point a to point b achieved?

• 1. economic growth

• 1. economic profit

• 1. price stability

• 1. full employment

A government economist is studying changes in the Consumer Price Index over time and working on policy proposals designed to limit inflation. What macroeconomic goal is the economist attempting to address?

• 1. consumer confidence

• 1. full employment

• 1. price stability

• 1. economic growth

Which of the following is an example of a country reaching its macroeconomic goals?

• Canada’s unemployment rate reached 15% last year.

• Inflation in Russia has changed dramatically since last year.

• Germany’s GDP has increased annually by at least 3% for the past 3 years

• The value of the Japanese Yen has declined, causing prices to rise in Japan.

What is the difference between consumer spending and investment?

• Consumer spending is associated with intermediate goods, while investment is associated with final goods.

• Consumer spending is associated with budget deficits, while investment is associated with budget surpluses.

• Consumer spending is associated with Gross Domestic Product (GDP), while investment is associated with the stock market.

• Consumer spending is associated with household spending on final goods and services, while investment is associated with capital goods, new inventory, and new real estate.

According to the chart below, what does the Real GDP suggest happened between 2005 and 2009?

• The economy achieved positive economic growth between 2005 and 2009.

• The economy experienced positive economic growth between 2005 and 2007 but remained idle between 2008 and 2009.

• The economy experienced positive economic growth between 2005 and 2007, stagnated in 2008, and declined in 2009.

• The economy experienced positive economic growth between 2005 and 2007, but experienced negative growth in 2008 and in 2009.

Which phrase BEST explains the difference between nominal and real Gross Domestic Product (GDP)?

• Real GDP measures the level of wealth of a geographic area.

• Real GDP is adjusted for inflation.

• Nominal GDP measures the total output of a country.

• Nominal GDP is adjusted using the production possibility curve.

Why are intermediate goods excluded when calculating GDP using the expenditure model?

• because they are imports

• because they are of inferior quality

• because they are used to make final goods

• because they were made in a previous year

Which of the following is NOT included in the Labor Force?

• A mom who stays at home to take care of her kids.

• A recent college graduate who is looking for a job.

• A 20 year old full time nanny

• A man employed for an insurance company full time.

The unemployment rate affects the economy by influencing

• consumer spending

• industrial growth

• federal regulations

• international trade

Sean has lost his job at the New York Stock exchange because the country has fallen into a deep recession. What kind of unemployment is Sean experiencing?

• 1. Cyclical unemployment

• 1. Seasonal unemployment

• 1. Structural unemployment

• 1. Temporary unemployment