Question 1

GDP is defined as

Accepted Answer

A)  gross demanded prices. 
B)  generally demanded product. 
C)  gross domestic product. 
D)  generally demanded prices. 
A)  gross demanded prices. 
B)  generally demanded product. 
C)  gross domestic product. 
D)  generally demanded prices. C

Question 2

The circular flow model shows that GDP can be calculated by

Accepted Answer

A)  both the expenditure and income methods because aggregate expenditure equals aggregate income. 
B)  only the expenditure method in which the four components of aggregate expenditure must be measured in the aggregate. 
C)  both the expenditure and income methods, even though aggregate expenditure is usually less than aggregate income. 
D)  only the income method in which the four components of aggregate income must be measured separately. 
A)  both the expenditure and income methods because aggregate expenditure equals aggregate income. 
B)  only the expenditure method in which the four components of aggregate expenditure must be measured in the aggregate. 
C)  both the expenditure and income methods, even though aggregate expenditure is usually less than aggregate income. 
D)  only the income method in which the four components of aggregate income must be measured separately. A

Question 3

In the United States over the past 40 years,the

Accepted Answer

A)  labor force participation rate has remained relatively constant and the unemployment rate has trended upwards. 
B)  both the unemployment rate and real GDP have tended to increase. 
C)  labor force participation rate has fallen and real GDP has increased. 
D)  unemployment rate has fluctuated and the labor force participation rate has risen. 
A)  labor force participation rate has remained relatively constant and the unemployment rate has trended upwards. 
B)  both the unemployment rate and real GDP have tended to increase. 
C)  labor force participation rate has fallen and real GDP has increased. 
D)  unemployment rate has fluctuated and the labor force participation rate has risen. D

Question 4

At full employment,

Accepted Answer

A)  real GDP equals potential GDP. 
B)  the unemployment rate is zero. 
C)  real GDP is above potential GDP. 
D)  the business cycle is at its peak. 
A)  real GDP equals potential GDP. 
B)  the unemployment rate is zero. 
C)  real GDP is above potential GDP. 
D)  the business cycle is at its peak.

Question 5

In the United States,over time GDP

Accepted Answer

A)  stays relatively constant with occasional increases. 
B)  increases most of the time and decreases occasionally. 
C)  increases and decreases roughly about the same amount. 
D)  decreases more often than it increases. 
A)  stays relatively constant with occasional increases. 
B)  increases most of the time and decreases occasionally. 
C)  increases and decreases roughly about the same amount. 
D)  decreases more often than it increases.

Question 6

The difference between nominal GDP and real GDP is that real GDP eliminates the effects from

Accepted Answer

A)  depreciation. 
B)  inflation. 
C)  the unemployment rate. 
D)  changes in productivity. 
A)  depreciation. 
B)  inflation. 
C)  the unemployment rate. 
D)  changes in productivity.

Question 7

A significant decline in activity spread across the economy,lasting more than a few months is called

Accepted Answer

A)  a recession. 
B)  an expansion. 
C)  a peak. 
D)  inflation. 
A)  a recession. 
B)  an expansion. 
C)  a peak. 
D)  inflation.

Question 8

Comparing the unemployment rate and the business cycle we see that

Accepted Answer

A)  the unemployment rate generally increases during expansions and generally decreases during recessions. 
B)  there is virtually no relationship between the business cycle and the unemployment rate. 
C)  the unemployment rate eventually falls during expansions and rises during recessions. 
D)  higher unemployment rates are the cause of most business cycles. 
A)  the unemployment rate generally increases during expansions and generally decreases during recessions. 
B)  there is virtually no relationship between the business cycle and the unemployment rate. 
C)  the unemployment rate eventually falls during expansions and rises during recessions. 
D)  higher unemployment rates are the cause of most business cycles.

Question 9

In the expenditure approach to measuring GDP,the components of GDP are

Accepted Answer

A)  consumption, investment, government expenditure, and net exports. 
B)  consumption, taxes, saving, and investment. 
C)  inflation, unemployment, saving, and investment. 
D)  frictional unemployment, structural unemployment, and cyclical unemployment. 
A)  consumption, investment, government expenditure, and net exports. 
B)  consumption, taxes, saving, and investment. 
C)  inflation, unemployment, saving, and investment. 
D)  frictional unemployment, structural unemployment, and cyclical unemployment.

Question 10

The labor force is defined as

Accepted Answer

A)  all people aged 16 and over and not institutionalized. 
B)  the entire population. 
C)  those people employed and unemployed. 
D)  only those people with jobs. 
A)  all people aged 16 and over and not institutionalized. 
B)  the entire population. 
C)  those people employed and unemployed. 
D)  only those people with jobs.

Question 11

The accumulated loss of output that results from a slowdown in the growth rate of GDP per person is called the

Accepted Answer

A)  Keynesian gap. 
B)  Okun gap. 
C)  Lucas wedge. 
D)  unemployment wedge. 
A)  Keynesian gap. 
B)  Okun gap. 
C)  Lucas wedge. 
D)  unemployment wedge.

GDP is defined as

The circular flow model shows that GDP can be calculated by

In the United States over the past 40 years,the

At full employment,

In the United States,over time GDP

The difference between nominal GDP and real GDP is that real GDP eliminates the effects from

A significant decline in activity spread across the economy,lasting more than a few months is called

Comparing the unemployment rate and the business cycle we see that

In the expenditure approach to measuring GDP,the components of GDP are

The labor force is defined as

The accumulated loss of output that results from a slowdown in the growth rate of GDP per person is called the

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters

Exam 17: Monitoring Macroeconomic Performance

GDP is defined as

The circular flow model shows that GDP can be calculated by

In the United States over the past 40 years,the

At full employment,

In the United States,over time GDP

The difference between nominal GDP and real GDP is that real GDP eliminates the effects from

A significant decline in activity spread across the economy,lasting more than a few months is called

Comparing the unemployment rate and the business cycle we see that

In the expenditure approach to measuring GDP,the components of GDP are

The labor force is defined as

The accumulated loss of output that results from a slowdown in the growth rate of GDP per person is called the

What Is Economics

The Economic Problem

Demand and Supply

Measuring GDP and Economic Growth

Monitoring Jobs and Inflation

Economic Growth

Finance, Saving, and Investment

Money, The Price Level, and Inflation

The Exchange Rate and the Balance of Payments

Aggregate Supply and Aggregate Demand

Expenditure Multipliers

Inflation, Jobs, and the Business Cycle

Fiscal Policy

Monetary Policy

International Trade Policy

Introduction

Macroeconomic Trends

Macroeconomic Fluctuations

Macroeconomic Policy

Filters