WorksheetsAP Macroeconomics Unit 2 Review
Total questions: 1
Worksheet time: 26mins
1-10.
Answer the questions below after watching the video
What does GDP stand for?
Gross Domestic Product
Gross Domestic Performance
General Domestic Product
General Domestic Performance
What does the expenditures approach to measuring GDP include?
Value added at each stage of production
All of the above
Consumer spending, investment, government spending, and net exports
Wages, rent, interest, and profit
Which of the following is NOT included in GDP calculations?
Consumer spending
Investment by businesses
Intermediate goods
Government spending
What does the circular flow model illustrate?
The calculation of GDP
The process of inflation
The interaction between households and businesses
The flow of financial resources
Which of the following is a limitation of GDP as an economic measure?
It does not account for non-market transactions
It counts intermediate goods
It overestimates the value of digital goods
It includes illegal transactions
Which type of unemployment is due to the economic recession?
Structural unemployment
Natural unemployment
Frictional unemployment
Cyclical unemployment
What is the natural rate of unemployment?
The rate when cyclical unemployment is zero
The rate including only structural unemployment
0%
The rate including only frictional unemployment
What is the most commonly used measure of inflation?
Retail Price Index (RPI)
Producer Price Index (PPI)
Consumer Price Index (CPI)
GDP deflator
Who benefits from unanticipated inflation?
Borrowers
Fixed income earners
Savers
Lenders
What does the GDP deflator measure?
The deflation rate of an economy
The change in consumer price index
The change in prices of all new, domestically produced, final goods and services in an economy
The inflation rate in the consumer market
