6.06 Unit Exam Economic Performance

Which of the following would NOT be included in the GDP?

• investment spending by a business

• consumer spending

• government spending

• paper/financial transactions

The goal of the government and the American people is that GDP...

• remains steady.

• grows steadily.

• shrinks.

• fluctuates.

The single best measure of the overall performance of the American economy and our standard of living is...

• GNP.

• real GDP.

• nominal GDP.

• misery index.

Nominal GDP is the current dollar value of the nation's output with no adjustment for inflation.

• True

• False

CPI stands for which of the following?

• Consumer Price Index

• Consumer Paid Insurance

• Consumer Product Insurance

• Consumer Product Index

A construction worker cannot work because of winter snowstorm. He is...

• cyclically unemployed.

• structurally unemployed.

• seasonally unemployed.

• frictionally unemployed.

Frictional unemployment means that the worker's skills do not match the jobs available in the economy. Workers must retrain, and learn new skills.

• True

• False

Cyclical unemployment occurs when jobs gained and lost in connection with the business cycle (during recession/contraction jobs are lost, during expansion jobs are regained).

• True

• False

Stagflation is a combination of inflation and unemployment, and leads to cost-push inflation.

• True

• False

What is the name given to unemployment that occurs because people want to take time to find a job?

• seasonal

• structural

• cyclical

• frictional