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13 questions
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
Which answer best completes this sentence?
Nominal GDP
is calculated using __________ prices.
last year's
current
estimated
wholesale
Which of the following is NOT a factor that influences the business cycle?
missing Social Security payments
interest rates on loans
capital investment in business development
uncontrollable weather events
Near-zero rates of unemployment are not desirable because they often lead to what?
decreases in the supply of products
increases in the cost of production
government regulation of the minimum wage
consumers demanding more products
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