Unit 3 GDP + Inflation + Fiscal/Monetary Policy

What does "GDP" stand for?

• Growth Domestic Product

• Gross Domestic Product

• Gross Dollar Product

• Growth of Dollars Produced

Which of the following represents individual and household spending under GDP?

• consumption expenditures

• government expenditures on goods and services

• investment expenditures

• all of these

Which of the following represents spending by businesses on capital equipment in GDP?

• consumption expenditures

• government expenditures on goods and services

• investment expenditures

• all of these

The formula for GDP is:

• B+H+E+NX=GDP

• C+I+G+(X-M)=GDP

• C+I= (X+M)

• (X-M)=C+B+H

Which of the following is an example of a good?

• iPhone

• haircut

• getting your nails done

• mowing the lawn

What is the business cycle?

• It reflects changes in real GDP over time

• it shows how the income levels in a country

• it shows how businesses grow

• I don't know

What are the 4 phases of the business cycle ?

• Top, bottom, up, down

• contraction, peak, growth, valley

• Expansion, peak, contraction, trough

• Peak, valley, growth, shrinkage

At what point in the business cycle is real GDP the highest?

• trough

• expansion

• peak

• contraction

The main economic variables that affect business cycles include all of the following EXCEPT

• interest rates

• external shocks/events

• personal savings levels

• business investments

An accurate statement about the Great Depression would be that

• recession that became a depression because of World War II.

• economists must find a way to monitor the macro economy

• because of a sharp and unexpected rise in interest rates.

• duration would've been worse but economy strong in Japan