Macroeconomics Review Quiz

What does macroeconomics study?

• Individual choices

• The entire economy

• Only businesses

• Government spending

What is GDP?

• The number of people with jobs

• The amount of money in banks

• The value of imports

• The total value of goods/services produced in a country

Which type of GDP adjusts for inflation?

• Nominal GDP

• Real GDP

• Used GDP

• Gross Investment

Who is counted in the unemployment rate?

• Children and retired people

• People actively looking for a job

• People working part-time only

• Everyone who doesn't have a job

What is frictional unemployment?

• When people are between jobs

• When robots take over jobs

• When no jobs exist

• When people give up looking for work

What is cyclical unemployment caused by?

• Changing technology

• A recession

• Personal choices

• High inflation

Why is inflation a problem?

• It makes prices go down

• It reduces purchasing power

• It makes people want to save

• It increases employment

What happens during a recession?

• GDP falls and unemployment rises

• Prices go up and up

• Everyone has a job

• The economy grows fast

What does the government sometimes do during a recession?

• Increase spending and cut taxes

• Increase prices

• Lower unemployment

• Sell more exports

What does the business cycle show?

• How businesses grow

• The ups and downs of the economy

• Changes in company profits

• Unemployment by age