Economic Indicators

Which of the following is NOT a basic economic indicator introduced in the lesson?

• Interest Rate

• Unemployment Rate

• Inflation Rate

• Real GDP

What does the inflation rate measure?

• The percentage of the labor force that is unemployed

• The total output of goods and services

• The total amount of money in circulation

• The rate that prices for goods and services have increased

How is the unemployment rate calculated?

• By dividing the number of unemployed individuals by the labor force and multiplying by 100

• By adding the number of unemployed and employed individuals

• By dividing the number of unemployed individuals by the total population

• By subtracting the number of employed individuals from the total population

What does an increase in real GDP indicate?

• Lower inflation rates

• Higher inflation rates

• Lower productivity and less employment

• Higher productivity and more employment

Which of the following is a cause of inflation?

• Demand-pull

• Supply-push

• Interest rate drop

• Decrease in consumer spending

What is the formula for calculating GDP?

• GDP = C + I - G + Xn

• GDP = C - I + G + Xn

• GDP = C + I + G - Xn

• GDP = C + I + G + Xn

What does a decrease in the unemployment rate generally suggest?

• Higher GDP and higher living standards

• Lower GDP and lower living standards

• Higher inflation and lower living standards

• Lower inflation and higher living standards

What is the impact of an unexpectedly large increase in inflation?

• Increased purchasing power

• Decreased interest rates

• Increased employment

• Reduced purchasing power

Which of the following is NOT a type of unemployment?

• Seasonal unemployment

• Cyclical unemployment

• Structural unemployment

• Frictional unemployment

Is GDP a true measure of a country’s economic success? Why or why not? Do we need to consider more? Why or why not?