Unit 2: Macroeconomics Review

What is GDP per capita?

• The total GDP divided by the nation's population

• The GDP adjusted for inflation

• The market value of all goods and services produced within a country

• The GDP right now and not adjusted for inflation

Which of the following is excluded from the GDP?

• Export sales

• Second hand sales

• Consumer Spending

• Government Spending

What is the difference between Current GDP and Real GDP?

• Real GDP is the GDP right now and not adjusted for inflation, while Current GDP is the GDP adjusted for inflation.

• Current GDP is the GDP right now and not adjusted for inflation, while Real GDP is the GDP adjusted for inflation.

• Real GDP includes nonmarket transactions, while Current GDP does not.

• Current GDP includes intermediate products, while Real GDP does not.

What does Gross National Product (GNP) include that GDP does not?

• The market value of goods and services produced by labor and property supplied by U.S. residents only within U.S. borders

• The market value of goods and services produced by labor and property supplied by U.S. residents, including production outside of U.S. borders

• Personal income minus taxes

• The GDP divided by the nation's population

How often is the U.S. Census Bureau's population count conducted?

• Every 5 years

• Every 10 years

• Annually

• Every 20 years

What could be a consequence of population growth being too slow?

• Production will exceed needs

• Labor shortages

• Overutilization of resources

• Increased export sales

What does the Dependency Ratio measure?

• The number of births per 1,000 women

• The number of children/elderly per 100 working age people

• The average remaining life span for a given generation

• The overall change in population due to migration

Which of the following is NOT a phase of the Business Cycle?

• Recession

• Trough

• Bubble

• Expansion

What is the purpose of the Leading Economic Index?

• To measure the number of births per 1,000 women

• To predict changes in the stock market

• To forecast changes in real GDP

• To calculate the Dependency Ratio

What is the role of the government according to Unit 2.5: Fiscal and Monetary Policy?

• To decrease taxes for all citizens

• To promote the economic goals of price stability, full employment, and economic growth

• To predict business cycles

• To increase government spending in all sectors