Macroeconomic Measures

What is the difference between a depression and a recession?

• a depression is longer lasting and more severe

• a recession last longer

• depressions occur more often

• there is no difference

What is GDP?

• Gross Domestic Product

• The total value of all goods & services produced in a nation in 12 months.

• One of the 3 macroeconomic measurements economists use to assess the condition of the economy.

• All of the above.

How is Gross Domestic Product (GDP) calculated?

• consumption by businesses + investment by households + individual spending + imports

• consumption by households + investment by businesses + gov't spending + net exports

• investment by individuals + consumption by gov't + business spending + net exports

• consumption by foreigners + investment by gov't + business spending + imports

What is CPI & what is it used to measure?

• Consumer Price Index & it's used to measure unemployment.

• Consumer Price Index & it's used to measure inflation rate.

• Consumption Price Indicator & it measures how much the average consumer buys at each price point.

• Crisis Prevention Indicator & it measures when the economy is about to enter the contraction phase of the business cycle.

What is inflation?

• increase in prices

• decrease in prices

• increase in income

• increase in GDP

Who is hurt most by inflation?

• Single people

• People over 40

• People on fixed incomes

• Married people

Which of the following economic problems would your 68 year old retired great uncle worry about, and why?

• deflation, because he's afraid of being loosing his part time job as the Wal-Mart greeter

• inflation, because he's living on a fixed income and will see a decrease in his purchasing power

• cyclical unemployment, because he's too old to learn new job skills

• a contraction, because he doesn't want his taxes to increase

Which of the following will not be counted in America’s GDP for the current year?

• a ticket to see one of the World Series baseball games

• a McDonald's value meal

• a new model (2021) Ford truck

• a used Chevy Impala

What are the 4 types of unemployment?

• structural, cyclical, frictional, seasonal

• seasonal, voluntary, mutual, seasonal

• structural, clerical, symbolic, seasonal

• contractual, hourly, salary, piece-rate

During which phase of the business cycle does most cyclical unemployment occur?

• growth/recovery/

  expansion

• peak

• contraction/

  recession/

  depression

• trough