Econ Indicators Quiz

What does GDP stand for?

• Gross Domestic Product

• General Domestic Product

• Gross Development Product

• General Development Product

Which of the following is a measure of the total economic output of a country?

• Unemployment Rate

• Inflation Rate

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

What is the formula for calculating GDP using the expenditure approach?

Which of the following is NOT included in the calculation of GDP?

• Consumer spending

• Government spending

• Net exports

• Black market transactions

What does the unemployment rate measure?

• The percentage of people who are employed

• The percentage of people who are unemployed and actively seeking work

• The percentage of people who are not in the labour force

• The percentage of people who are underemployed

What is the natural rate of unemployment?

• 0%

• 2%

• 4-5%

• 10%

What does the inflation rate measure?

• The rate at which the general level of prices for goods and services is rising

• The rate at which the general level of prices for goods and services is falling

• The rate at which the unemployment rate is rising

• The rate at which the GDP is growing

What happens to borrowing and spending when interest rates are high?

• Borrowing and spending increase

• Borrowing and spending decrease

• Borrowing increases, spending decreases

• Borrowing decreases, spending increases

What is the relationship between interest rates and inflation?

• Higher interest rates tend to decrease inflation

• Higher interest rates tend to increase inflation

• Lower interest rates tend to decrease inflation

• There is no relationship between interest rates and inflation

Which of the following is NOT a type of interest rate?

• Nominal interest rate

• Real interest rate

• Effective interest rate

• Hypothetical interest rate