Economic Measures Quiz

Hyperinflation is inflation at extremely high rates, for example, 1000, 1 million, or even 1 billion percent a year.

The Consumer Price Index measures the average price of goods consumed by urban wage-earners.

Gross National Product (GNP) is the total value of all the final goods and services made by a nation’s economy in a specific time (usually a year). GNP is different from net national product, which considers depreciation and the consumption of capital.

<p>A recession is a downturn in economic activity associated with falling levels of GDP, consumption, and investment expenditure. Inflation and interest rates are declining, and the level of unemployment is rising.</p> Signup and view all the answers

<p>Double counting is an error that occurs when a total is obtained by summing gross amounts instead of net amounts.</p> Signup and view all the answers

<p>Measuring the average price of goods consumed by urban wage-earners</p> Signup and view all the answers

<p>Total value of all final goods and services made by a nation's economy</p> Signup and view all the answers

<p>Gauge how much earned income of households is being spent on current consumption</p> Signup and view all the answers

<p>A product used to produce a final good or finished product</p> Signup and view all the answers

<p>A downturn in economic activity with falling levels of GDP, consumption, and investment expenditure</p> Signup and view all the answers