Macro Unit 2- Practice Questions #1

This video tutorial covers 11 multiple-choice questions on macroeconomics, focusing on GDP, unemployment, and related concepts. Each question is explained with correct and incorrect answers, providing insights into economic principles such as GDP calculation, investment, recession, and employment metrics.

What is the definition of Gross Domestic Product (GDP)?

Describe the impact of government spending on GDP.

What is included in the calculation of GDP?

Explain the difference between the income approach and the spending approach to calculating GDP.

What are the implications of an increase in real GDP?

What constitutes a recession?

How does an increase in the labor force participation rate affect the unemployment rate?

What is structural unemployment and how does it differ from cyclical unemployment?

What happens to the unemployment rate when discouraged workers stop looking for jobs?

What is the natural rate of unemployment?