Macroeconomics Unit Review

The branch of economic theory focused on the economy as a whole and decision making by large units, such as governments and unions is

• Microeconomics

• Macroeconomics

• Government economics

• Fiscal economics

Which of the following is NOT included in the calculation for GDP?

• Goods

• Services

• Processes

• Structures

GDP is a measure of

• Average Economy

• National Income

• National Output

• Average Utility

True or false: The GDP is the dollar value of all final goods, services, and structures produced within a country's national borders during a one year period.

• True

• False

A decline in real GDP growth rate lasting at least 2 quarters (6 months) is

• Recession

• Depression

• Deflation

• Economic Bubble

A severe recession is also called

• Recession

• Depression

• Inflation

• Deflation

Which of these would be EXCLUDED from the GDP calculation?

• Haircuts

• Housing contruction

• Earbuds

• Illegal drug deals

Which of the following would be INCLUDED in the GDP calculation?

• Haircut

• Illegal drug deal

• Smuggling

• Used car

What is the difference between Current (Nominal) GDP and Real GDP?

• Real GDP is adjusted for inflation, and Nominal GDP is not.

• Real GDP is not adjusted for inflation, and Nominal GDP is.

• Real GDP is adjusted for changes in trade, and Nominal GDP is adjusted for inflation.

• Real GDP includes underground/off market economic activities.

• There is no difference.

What measure is useful in comparing countries' wealth?

• Education level

• Average household size

• Real GDP per capita

• Minimum wage