Quiz 3 Videos

Question 1

Peak

Answer 1

Real GDP highest level of growth before contraction

Question 2

Contraction

Answer 2

Recession

Question 3

Trough

Answer 3

Lowest level of real GDP contraction before expansion

Question 4

Excessive inflation

Answer 4

Area between growth trend line and peak

Question 5

Excessive unemployment

Answer 5

Area between growth trend line and trough

Question 6

One business cycle is defined as

Answer 6

Peak trough peak

Question 7

Economic recession

Answer 7

2 straight quarters of real GDP contraction or 6 straight months

Question 8

GDP

Answer 8

Measures total market value of all goods and services produced in an economy in a given year

Question 9

Final goods and services

Answer 9

Goods and services sold to an end user

Question 10

Intermediate good

Answer 10

Good used in production of final goods and services

NOT COUNTED IN GDP because price includes in final sale

Question 11

To be counted in GDP where must an item be produced ?

Answer 11

Within the countries borders

Question 12

Does a car produced by a U.S. company in Mexico count in U.S. GDP ?

Answer 12

No

Question 13

A car produced by a foreign company in Kentucky counts how?

Answer 13

In GDP

Question 14

Real GDP

Answer 14

GDP adjusted for inflation

Question 15

Real GDP average anual rate growth since 1950?

Answer 15

3.3%

Question 16

Two consecutive quarters of declining real GDP constitute what?

Answer 16

A recession

Question 17

GDP is a measure of what?

Answer 17

National income

Question 18

GDP per person

Answer 18

GDP per capita

Question 19

GDP per capita

Answer 19

GDP divided by the population