Lesson 6 Quiz over Chapter 19

Question 1

An extended period of declining output and living standards is referred to as a recession.

Answer 1

True

Question 2

Consumption in the United States is about ______ of GDP, and it moves relatively little over time.

Answer 2

68%

Question 3

GDP is:

Answer 3

the value of all final goods and services produced domestically.

Question 4

_______ per person is used to measure the standard of living across countries.

Answer 4

GDP

Question 5

_________ measures a nation/’s output in current year prices.

Answer 5

Nominal GDP

Question 6

In order to achieve modern economic growth, a nation/’s output must grow faster than its population.
True or False?

Answer 6

True

Question 7

The demand measure of GDP accounting adds together:

Answer 7

consumption, investment, government purchases, and trade balance.

Question 8

What type of GDP is least likely to overstate or understate actual performance?

Answer 8

Real GDP

Question 9

The business cycle is primarily concerned with changes in the level of overall prices over time.
True or False?

Answer 9

False

the business cycle is concerned with “the relatively short-term movement of the economy in and out of recession”

Question 10

Which of the following are the main focus for measuring the health of the macroeconomy? (Select all that apply.)

Answer 10

real GDP
inflation
unemployment