Economic Measures and Fiscal Policy

The most important measure used in national income accounting is called...

• Macroeconomics

• Consumer Price Index

• Gross Domestic Product

  (GDP)

• The Business Cycle

All spending by households on durable goods, non-durable goods, and services is called...

• Consumption

• Inflation

• Mandatory Spending

• Discretionary Spending

Which is not a requirement for a good or service to be included in GDP?

• Be final rather than intermediate

• Must be produced during the current time period

• Must be produced within the nation's borders

• Can be made in foreign countries as long as it is produced by a U.S. company

The two forms of GDP are called nominal GDP and...

• Welfare

• real GDP

• Productivity

• Appropriations

Which below is an example of a nonmarket activity?

• Performing one's own home repairs

• Building cars in a factory

• Selling Insurance for a company

• Stocking shelves at a local grocery store

Which activity below belongs to the Underground Economy?

• Cooking

• Cleaning

• Volunteering

• Smuggling

What percentage of people live in poverty in the United States?

• more than 10 percent

• more than 50 percent

• less than 5 percent

• more than 20 percent

A series of expanding and contracting economic activities is known as...

• Gross Domestic Product

• National Income Accounting

• The Business Cycle

• Recession

Economic growth is defined as...

• An increase in a nation's poverty rate

• An increase in a nation's real GDP

• An increase in illegal trading

• An increase in a nation's nominal GDP

#1 on the Business Cycle represents...

• Expansion

• Peak

• Contraction

• Trough