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Unit 7 - Business Cycles and GDP

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

GDP, or gross domestic product, measures...

a)

the value of all final goods and services produced

b)

an increase in the general price level

c)

the percentage of people looking for work that can't find it

d)

the economic freedom an economy offers

2.

Inflation measures...

a)

the value of all final goods and services produced

b)

an increase in the general price level

c)

the percentage of people looking for work that can't find it

d)

the economic freedom an economy offers

3.

Unemployment measures...

a)

the value of all final goods and services produced

b)

an increase in the general price level

c)

the percentage of people looking for work that can't find it

d)

the economic freedom an economy offers

4.

Which of the following is a peak?

a)

A

b)

B

c)

C

d)

D

5.

Which of the following is a recession, or contraction?

a)

A

b)

B

c)

C

d)

D

6.

Which of the following is a trough?

a)

A

b)

B

c)

C

d)

D

7.

Which of the following is an expansion, or recovery?

a)

A

b)

B

c)

C

d)

D

8.

Nominal GDP - _____ = Real GDP

a)

Inflation

b)

Unemployment

c)

Imports

d)

Exports

9.

GDP divided by ______ = GDP per capita

a)

population

b)

income

c)

wealth

d)

production

10.

"Real" GDP more accurately measures changes in production than Nominal GDP because it accounts for...

a)

changes in price

b)

phases of the business cycle

c)

increases in unemployment

d)

decreases in exports