Macroeconomics Test Review

Inflation is measured by...

• Consumer Price Index (CPI).
• Gross National Product (GNP).
• Gross Domestic Product (GDP).
• Securities & Exchange Commission (SEC).

What is Gross Domestic Product (GDP)?

• The total market value of all final goods and services produced by a country's citizens.

• The total market value of all final goods and services produced within a country's borders in a given period of time.

• The total market value of all imported goods and services.

• The total market value of all exported goods and services.

The most important measure of economic growth is... 

• GNP
• GNC
• DDP
• GDP

The total dollar value of all final goods and services produced within the country’s border in a given year after inflation is taken out of the data.

• Nominal GDP
• GDP/capita
• Gross GDP
• Real GDP

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

When the economy experiences an expansion, it is most likely the case that

• GDP is increasing, unemployment is increasing, and inflation is decreasing

• GDP is decreasing, unemployment is decreasing, and inflation is increasing.

• GDP is increasing, unemployment is decreasing, and inflation is increasing

• GDP is decreasing, unemployment is decreasing, and inflation is decreasing.

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

An 80 year old woman living off Social Security.

• Employed

• Unemployed

• Not counted / Not in the Labor Force

A man with a PhD working as a waiter at Olive Garden about 20-25 hours a week.

• Employed

• Unemployed

• Not counted / Not in the Labor Force