Level 9 Review Key Economic Measurements and Growth

Gross domestic product is equal to the market value of all final goods and services:

• exchanged during a period.

• produced by the citizens of a nation during a period.

• 
  produced domestically in a country's borders in one year.

• produced domestically during a period minus the depreciation of productive assets.

Which of the following expenditures would not be included in GDP?

• Purchase of a new lawnmower.

• 
  Purchase of a ticket to the latest movie.

• Purchase of a silver cup previously sold new in 1950.

• All of these would be counted in GDP.

All final goods and services that make up GDP can be expressed in the form:

• GDP = C + I - G + (X + M).

• GDP = C + I + G + (X - M).

• GDP = C + I + G + (X + M).

• GDP = C + I + (X - M).

The unemployment rate equals the number of persons:

• unemployed divided by the population age 16 and over

• not working divided by the population age 16 and over.

• unemployed divided by the number in the labor force.

• 
  unemployed divided by the number employed.

Inflation is defined as an increase in:

• all consumer products.

• real GDP.

• 
  real wages of workers.

• 
  the average price level.

What usually happens to inflation during a recession?

• it decreases

• it stays the same

• it increases

• it is zero

A worker who was laid off due to a downturn in the business cycle would be considered

• frictionally unemployed.

• cyclically unemployed.

• structurally unemployed.

• seasonally unemployed.

Logan loses his job cooking pizza when a robot can do it faster and at a lower expense.  Which type of unemployment is he experiencing?

• Cyclical

• 
  Frictional

• Structural

• Seasonal

A way to assess the standard of living is by calculating

• the economic growth rate

• the unemployment rate

• the inflation rate

• GDP per capita

Over half of the spending of the _______________ include programs like Medicare, Social Security & Unemployment.

• Household Consumption/ C

• Government Purchases/ G

• Business Investment/ I

• Net Exports/ NX