Economic Performance

Our macroeconomic goals are

• GDP growth 3%, unemployment 4-6%, inflation 1-2%

• low taxes and economic growth

• free wifi nationwide

• real GDP per capita growth

Which of the following is an intermediate good

• a new car

• a dining table

• a couch

• raw lumber

For a good/service to be included in GDP it must

• be a final good, made here, this year

• be a finished good

• it must be a final good, made by an American owned company

• it must be made at a factory

What is the difference between real GDP and nominal GDP?

• real GDP is adjusted for inflation, while nominal GDP is not

• real GDP is accurate to thousands, while nominal GDP is accurate to millions

• real GDP is current, nominal GDP is constant

What is the best measure of a nation's standard of living?

• real GDP

• unemployment rate

• real GDP per capita

• inflation rate

During the expansion phase of the business cycle real GDP is -

• increasing

• decreasing

During the contraction phase of the business cycle real GDP is -

• increasing

• decreasing

During the expansion phase of the business cycle unemployment rate is -

• increasing

• decreasing

During the contraction phase of the business cycle the unemployment is rate is -

• increasing

• decreasing

What are the two limitations of goods counted in GDP?

• taxes and government spending

• inflation and unemployment

• Intermediate goods & unemployment

• Non-market activities & underground economy