Gross Domestic Product and Standard of Living

What is GDP?

• Gross Domestic Product

• Get Duties Prior

• Gross Department Power

• Gross Duties Peer

A general rule of thumb says that a country has experienced a recession if:

• Real GDP has declined.

• GDP has declined.

• Nominal GDP has declined for at least two consecutive quarters.

• Real GDP has declined for at least two consecutive quarters.

GDP measures the:

• Total market value of intermediate goods and services produced by the citizens of a country in a given year.

• Total market value of all final goods and services produced in an economy in a given year.

• Change in total employment at U.S. owned firms over the course of a given year.

• Change in production levels at U.S. owned firms measured quarterly.

Which of the following is likely the best indicator of economic health?

• Real GDP is $18 trillion.

• Real GDP grew by 3 percent this year.

• Nominal GDP is $18 trillion.

• Nominal GDP grew by 3 percent this year.

If potential Real GDP for an economy is estimated as 2.5 and the current Real GDP growth rate is 4.5, you should be most concerned about:

• Nothing, the economy is growing.

• The possibility of an increase in the inflation rate.

• The possibility of an increase in the unemployment rate.

• The possibility of rising levels of poverty.

Real GDP is:

• GDP adjusted for changes in output.

• Nominal GDP adjusted for inflation.

• GDP adjusted for standard of living.

• Nominal GDP adjusted for population.

Which of the following would not be counted in GDP?

• A widget produced in Missouri by a Canadian company.

• A widget produced in Germany by a U.S. company.

• A widget produced in Arkansas by a Chinese company.

• A widget produced in Tennessee by a U.S. company.

Business spending on physical capital, new homes, and inventories is counted in which component of GDP?

• consumption

• investment

• imports-exports

• government spending

The total dollar value of all final goods and services produced within the country's border in a given year. This measure includes inflation.

• Nominal GDP

• Gross National Product

• Gross Income Measure

• Gross Outcome Measure

Which causes United States GDP to increase?

• Japan buys government securities.

• The United States sells more goods to Japan.

• Japan sells Japanese securities to the U.S.

• The United States buys more Japanese goods.