Macroeconomics and GDP Quiz

Which of the following is NOT included in GDP?

• Buying groceries at the local market

• Government spending to fix the roads

• Financial transactions such as trading of stocks and bonds

• Spending during your spring break trip to Florida

What does Real GDP measure?

• The total output produced annually within a country's borders

• The total output produced annually within a country's borders, adjusted for population growth

• The total output produced annually within a country's borders, adjusted for price changes

• The total output produced annually within a country's borders, adjusted for income differences

Ethan, Mason, and Aria are playing a game of 'Economy Whiz'. Ethan throws a question, 'What would be the rate of economic growth if the Real GDP increased from $18.78 trillion to $19.22 trillion?' Can you help Mason and Aria answer this?

• 4.34%

• 1.34%

• 3.34%

• 2.34%

Imagine Bert and Ernie are playing a game of 'Business Cycle Monopoly'. They land on a phase where there is high unemployment and barely positive growth. Which phase of the business cycle does this scenario best describe?

• Peak

• Recession

• Trough

• Recovery

In which category would the value of an iPhone made in China appear?

• In both U.S. and China's GDP

• In China's GNP

• In U.S. GNP

• In U.S. GDP

Zoe, Sophia, and Ava are playing a game of 'Economy Whiz'. Zoe draws a card and reads out the question, 'Which variable constitutes the largest portion of GDP using the expenditure approach?' Can you help them answer?

• Investment

• Government spending

• Net exports

• Consumption

One key idea in national income accounting is that every dollar you spend will eventually end up as someone else's

• expenditure

• income

• savings

• responsibility

Using the expenditures approach, the equation to calculate GDP is

• C + I + G + (M-X)

• C + I + G + NX

• C + I = G + NX

• C + I + G

Imagine Benjamin, Luna, and Mia are running a small startup. They decide to buy a new computer to help manage their business. Where would this purchase be counted in the GDP equation?

• C

• I

• "I" and also possibly "M," if the computer was made in another country

• "I" and also possibly "M" if the computer was made in the U.S.

What does it mean to have a trade deficit?

• That a country is exporting more than it imports

• That a country is importing more than it exports

• That a country's imports and exports are equal to each other