GDP and Macroeconomics Quiz

What is the term for the lowest point in the business cycle?

• Peak

• Expansion

• Trough

• Recovery

Which phase of the business cycle is characterized by the highest prices and lowest unemployment?

• Expansion

• Peak

• Contraction

• Trough

Which of the following is an example of a leading indicator?

• Unemployment

• Industrial production

• Housing starts

• Corporate profits

Gross Domestic Product involves the measurement of what?

• National sports achievements

• National economic performance

• National cultural events

• National historical sites

What does national income accounting primarily deal with?

• The economy's income and output

• The country's geographical features

• The nation's historical events

• The global climate changes

What does GDP measure in a nation?

• Total dollar value of all final goods and services produced

• Total number of goods produced

• Total number of services provided

• Total population growth

What is excluded from GDP calculations?

• Intermediate goods

• Final goods

• Services

• Exports

What are government goods?

• Goods and services bought by consumers

• Tools and machines used to produce other goods

• Anything purchased by federal, state, and local governments

• The difference between exports and imports

Which component of GDP could the factory icon represent?

• Investment

• Government Spending

• Consumer Spending

• Net Exports

Which of the following is a characteristic of intermediate goods?

• They are used in the production of final goods

• They are sold directly to consumers

• They are durable goods

• They are imported goods