Macroeconomics Quiz

A measurement that reports the price level for thousands goods and services purchased by typical households is called

• implicit GDP price deflator

• consumer price index

• produce price index

• current GDP

The largest section of the macroeconomy is the

• investment sector

• government sector

• foreign sector

• consumer sector

A U.S. business purchases new cars for its workers from a U.S. car manufacturer. In which GDP category would this transaction be recorded?

• consumer sector

• investment sector

• government sector

• net exports

Which of the following would not be included in the GDP?

• consumer spending

• government spending

• net exports

• intermediate goods

All of the following are basic sectors of GDP and the US Economy EXCEPT

• the debtors sector

• the consumer sector

• the government sector

• the investment sector

Real GDP per capita is the preferred measure of economic growth over the long run because

• current GDP cannot be accurately measured

• price levels and populations change over time

• the standard of living can be measured only in the short run

• labor productivity changes over time

Which is a common criticism of using Gross Domestic Product (GDP) as a measure of the economy?

• It does not account for income inequality.

• It accurately measures environmental impact.

• It includes non-market transactions.

• It reflects the well-being of citizens.

Which interval of points best represents an expansion?

• A. A to B

• B. B to C

• C. C to D

• D. None of the above

Which letter best represents long run economic growth?

• A

• B

• C

• D

• E

Cost-push inflation is caused by

• an increase in government expenditures

• a decrease in consumer incomes

• an increase in consumer spending

• an increase in input costs paid by producers