Gross Domestic Product (GDP)

What is Gross Domestic Product (GDP)?

• The total value of all final goods and services produced in a country

• The total value of all intermediate goods and resources in a country

• The total value of all goods and services imported by a country

• The total value of all goods and services exported by a country

Which government agency is responsible for calculating GDP for the U.S?

• Department of Commerce

• Department of Treasury

• Department of Labor

• Department of Agriculture

How often is GDP calculated?

• Every month

• Every 6 months

• Every year

• Every 3 months (quarterly)

What are the four key areas of the economy used to calculate GDP?

• Consumer spending, investments, government purchases, and imports

• Consumer spending, investments, government purchases, and exports

• Consumer spending, investments, government sales, and imports

• Consumer spending, investments, government sales, and exports

What does an increase in GDP indicate?

• Businesses are making and selling more goods and services

• Businesses are making and selling less goods and services

• Businesses are reducing their workforce

• Businesses are decreasing their investments

What is Real GDP?

• GDP adjusted for inflation

• GDP without considering inflation

• GDP calculated using nominal values

• GDP calculated using real values

Why is it important to use Real GDP instead of Nominal GDP?

• Real GDP takes into account the effect of inflation

• Nominal GDP is more accurate than Real GDP

• Real GDP is only used for specific industries

• Nominal GDP is adjusted for inflation

What does a decrease in GDP indicate?

• Businesses are making and selling less goods and services

• Businesses are making and selling more goods and services

• Businesses are increasing their workforce

• Businesses are increasing their investments

What is the purpose of calculating GDP?

• To measure the health of the economy

• To determine the unemployment rate

• To calculate the inflation rate

• To assess the stock market performance

What is an example of a final good?

• A completed and sold car

• Steel used to make a car

• Plastic used to make a car

• Glass used to make a car