Macroeconomics Review

Front

What is GDP?

Back

Gross Domestic Product

Front

Which of the following is NOT TRUE of GDP?
It considers the market value of both intermediate and final goods and services.
It includes the market value of all final goods and services.
It includes all final goods and services produced in the nation within a set time period.
Consumer spending is a big factor in the expenditure model of GDP.

Back

It considers the market value of both intermediate and final goods and services.

Front

The government hires contractors to build and pave highways. Is this included in GDP within the expenditures model?

Back

YES

Front

What are the two main types of GDP?

Back

Nominal & Real

Front

Which type of GDP accounts for inflation and is therefore the MOST accurate? Options: Nominal, Growth, Real, Non-Market

Back

Real

Front

Which of the following is NOT measured in GDP?
- Illegal narcotics sales
- Running a plumbing business
- Selling produce
- Buying an American-made car

Back

Illegal narcotics sales

Front

The​ ​Consumer​ ​Price​ ​Index​ ​(CPI)​ ​can​ ​be​ ​defined​ ​as

Back

A​ ​measure​ ​of​ ​inflation​ ​based​ ​on​ ​the​ ​cost​ ​of​ ​a​ ​fixed​ ​“market​ ​basket”

Front

Money loses its value when it becomes too plentiful.

Back

becomes too plentiful

Front

The central bank in the USA that regulates the monetary system

Back

The Fed

Front

What do you call an economic policy that is designed to influence the aggregate demand in order to control the economy?

Back

Fiscal policy