Intro Macro Quiz 1

GDP is the value of

• the total amount of money in circulation within a country
• the total value of all imports and exports of a country
• the total monetary value of all final goods and services produced within a country in a specific time period

• the value of all assets owned by individuals in a country

Inflation is the rate of change

• in prices, and the price level is the cumulation of past

  inflations.

• in cost of production

• in technological advancement

• all of them

The unemployment rate measures the fraction of the workforce that is

Real GDP is the value of final goods and services

produced in a given year

• when valued at the prices of

  that year.

• valued for a decade

• when valued at the prices of

  a reference base year .

• valued every 5 years

Which of the following best describes inflation?

• A decrease in the general price level

• A decrease in economic output

• A rise in individual wages

• An increase in the general price level over time

An increase in GDP generally indicates:

• Higher unemployment
  

• Lower production levels

• Economic growth

• Price deflation

The unemployment rate is calculated as:

• Unemployed people / Total population
  

• Employed people / Working-age population

• Unemployed people / Labor force

• Employed people / Labor force

Which of the following would be considered part of the labor force?

• A full-time student not seeking work
  

• A person actively seeking a job

• A stay-at-home parent

• A retired person

A decrease in the labor force participation rate could be due to

• An increase in the unemployment rate

• More people entering the workforce

• More people retiring or leaving the labor market

• Higher job creation

Economists use estimates of GDP for a main

purpose of