GDP
GDP stands for:
Gross Domestic Product
A recession is a period of lowered GDP lasting at least ____ months
6
The quantity demanded of a product is affected by:
price
A period in which overall economic growth (GDP) has decreased for a long period of time, unemployment is very high, and business investment is very low is called:
a depression
Which of the following would NOT be included in a market basket for calculating CPI?
A. the cost of coal charged to a utility plant
B. a jar of peanut butter
C. a gallon of milk
A. the cost of coal
Measures the change in price of a specific group of good and services the average household uses
Consumer Price Index (CPI)
If the overall price of goods in the economy falls, aggregate demand would most likely:
rise or shift right
The relationship between price and demand is considered what, in graph form?
Inverse
The “natural state” of the US business cycle most closely approximates:
an erratic, “up and down” cycle that looks like a roller coaster
Income after taxes
Disposable Income
New orders for consumer goods, changes in the number of building permits issues for private homes, and stock prices in the stock market indexes are all examples of:
Leading Indicators
The difference between nominal GDP and Real GDP is...
Real GDP is adjusted for inflation.
What action taken by the government would likely cause aggregate supply to decrease??
raising taxes
imposing restrictions
a Business recovery period when economic activity increases
Expansion
A system of economics typified by a woman owning both the cow and the milk it produces
Capitalism
What would be an example of “double counting” in calculating GDP.
Counting tires on a new car.
A period of expansion is signified by what?
rising prices
low unemployment
increased consumer confidence
increased investment
The aggregate demand and aggregate supply of the US economy most closely meet at:
GDP or 21 Trillion Dollars
Consistent fall in overall prices of good and services in a nation's economy over time
Deflation
The total amount of satisfaction received from a purchase
Utility
Current unemployment rates are most associated with which economic indicator?
coincident
What is the formula for calculating GDP?
C+I+G+ (X-N)
What would cause a shift of the aggregate supply curve to the right?
rising prices
lowered costs for inputs
lowered taxes
A period in which overall economic growth (GDP) is increasing is most likely:
Expansion
What was the most likely result of the invention of the Internet on the business cycle?
It led to an economic expansion because innovation usually increases productivity and eventually increases employment