Gross Domestic Product (GDP) and Economic Indicators Quiz
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Questions and Answers

Which of the following is NOT a requirement to be included in the GDP?

  • The good or service must be produced within the nation's borders
  • The good or service must be consumed within the nation's borders (correct)
  • The good or service must be produced during the time period
  • The good or service must be final rather than intermediate

    • Which one of these is the correct definition of GDP?

  • The total value of all goods and services consumed within a nation in a given time period
  • The total value of all goods and services produced within a nation in a given time period
  • The total value of all intermediate goods and services produced within a nation in a given time period
  • The total value of all final goods and services produced within a nation in a given time period (correct)

    • What does GDP stand for?

  • Gross Domestic Profit
  • Government Domestic Profit
  • Gross Domestic Product (correct)
  • Government Domestic Product

    • Which letter is used to represent government spending in the GDP equation?

    <p>G</p> Signup and view all the answers

    Which of the following is NOT one of the four sectors of the economy used to calculate GDP?

    <p>Foreign companies</p> Signup and view all the answers

    Which of the following is included in the calculation of GDP?

    <p>Government spending</p> Signup and view all the answers

    What is the formula to calculate GDP?

    <p>C + I + G + X</p> Signup and view all the answers

    Which of the following is NOT a component of GDP?

    <p>Imports</p> Signup and view all the answers

    What does the letter X represent in the GDP equation?

    <p>Net exports</p> Signup and view all the answers

    Which of the following is NOT true about GDP?

    <p>Intermediate goods are included in the calculation of GDP</p> Signup and view all the answers

    Which of the following best describes a recession?

    <p>A prolonged economic contraction lasting two or more quarters</p> Signup and view all the answers

    What is the final phase of the business cycle called?

    <p>Trough</p> Signup and view all the answers

    What is a depression?

    <p>A period of high unemployment and reduced business activity</p> Signup and view all the answers

    What is stagflation?

    <p>A period of rising prices and a slowdown in business activity</p> Signup and view all the answers

    When is a business cycle considered complete?

    <p>When it goes through all four phases</p> Signup and view all the answers

    What is the definition of a trough?

    <p>A point at which real GDP and employment stop declining</p> Signup and view all the answers

    Which of the following best describes a recession?

    <p>A prolonged economic contraction lasting two or more quarters</p> Signup and view all the answers

    What is the definition of a recession?

    <p>A prolonged economic contraction lasting two or more quarters</p> Signup and view all the answers

    What is a depression?

    <p>A period of high unemployment and reduced business activity</p> Signup and view all the answers

    What is stagflation?

    <p>A period of rising prices and a slowdown in business activity</p> Signup and view all the answers

    Which form of GDP states GDP in terms of the current value of goods and services?

    <p>Nominal GDP</p> Signup and view all the answers

    What is real GDP?

    <p>An estimate of the GDP if prices were to remain constant from year to year</p> Signup and view all the answers

    What is the underground economy?

    <p>Market activities that go unreported because they are illegal or to avoid taxation</p> Signup and view all the answers

    What does GDP not show?

    <p>How the goods and services are distributed</p> Signup and view all the answers

    What is Gross National Product (GNP)?

    <p>The market value of all final goods and services produced by a country</p> Signup and view all the answers

    What is Net National Product (NNP)?

    <p>The value of final goods and services less the value of capital goods that become worn out</p> Signup and view all the answers

    What is National Income (NI)?

    <p>The total income earned in a nation from the production of goods and services</p> Signup and view all the answers

    What is Personal Income (PI)?

    <p>The income received by a country’s people from all sources</p> Signup and view all the answers

    What is Disposable Personal Income (DPI)?

    <p>Personal income minus taxes</p> Signup and view all the answers

    What are the four stages of the business cycle?

    <p>Expansion, Peak, Contraction, Trough</p> Signup and view all the answers

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