GDP Quiz

Correctly label the business cycle

a

b

c

d

Peak

Contraction

Trough

Expansion

This is a measurement of economic activity that occurs within a country's borders during a year.

What is real GDP?

• Real GDP is the measure of a country's economic output without any adjustments.
• Real GDP is the measure of a country's economic output adjusted for population growth.
• Real GDP is the measure of a country's economic output adjusted for changes in the stock market.
• Real GDP is the measure of a country's economic output adjusted for inflation or deflation.

Match the following components of GDP

• Buying a new aircraft carrier

• Consumer Spending

• Buying TV made in Japan

• Exports

• Buying a book on amazon

• Business Investment

• Buying a new cash register

• Imports

• Selling wine overseas

• Government Spending

What are the three basic economic goals every country has?

• Constant growth

• Low unemployment

• Stable prices

• No unemployment

Why is it more important to have low unemployment instead of no unemployment

• Low unemployment is more important because it indicates a healthy economy.
• Low unemployment is important because it ensures a fair distribution of jobs.
• Low unemployment is not important because it doesn't guarantee a healthy economy.
• No unemployment is more important because it means everyone has a job.

Match the following scenarios with the correct type of unemployment

• Recent college grad looking for work

• Cyclical Unemployment

• Workers fired when factory buys robots

• Frictional Unemployment

• Workers fired when a factory shuts down

• Structural Unemployment

What are the four components of GDP?

• consumption, investment, government spending, and net exports
• income, savings, exports, and imports
• production, distribution, consumption, and disposal
• taxes, subsidies, imports, and exports

What happens to inflation during economic expansion?

• Inflation tends to increase during economic expansion.
• Inflation is unrelated to economic expansion.
• Inflation decreases during economic expansion.
• Inflation remains constant during economic expansion.

What happens to unemployment during a recession?

• Unemployment remains the same
• Unemployment is not affected
• Unemployment increases
• Unemployment decreases