GDP
Limitations of GDP
Economic Goals
Business Cycle
Misc.
100
If inflation rises, what happens to GDP and why?
GDP will rise due to price increase in goods produced and not as a result of any economic growth.
100
What activities are not included in GDP
Non-market activities (DIY's) and anything in the underground economy
100
What are the 4 economic goals?
Growth, Stability, Equity & Efficiency
100
What are the four stages of the business cycle
Recession, Depression/Trough, Expansion/Recovery & Peak
100
What is the difference between nominal and real GDP
Nominal ignores the effect of inflation Real takes out the effects of inflation
200
What is the formula for GNP/GDP?
Consumer Spending + Investments + Government Spending + Exports - Imports
200
Why is GDP not an accurate measure of product quality
Since GDP only adds up selling prices it does not capture these quality improvements
200
How is a country's efficiency calculated?
By its GDP
200
What stage of the business cycle is worn out machinery placed
Expansion/Recovery
200
what is the multiplier?
increase in spending is going to have an effect on the economy that is greater than the initial spending
300
What is the difference of GNP and GDP?
Gross National Product measures market value of all final goods and services produced during a given year by Canadians. Gross Domestic Product measures market value of all final goods and services produced during a given year within Canada.
300
Why doesn't GDP reflect how output is distributed among a country's citizens
If 2 citizens in two countries with the same per captita GDP may have very different living standards if one country' s income is equally distributed, while most of the other country's income is in the hands of a few
300
Economic goals help the government do what
Economic goals help the government choose the right decisions with the least amount of opportunity cost
300
When is the best time to invest during in relationship to the business cycle
Expansion/Recovery
300
What is the anti-inflation act
In 1976, Trudeau past an act which controlled prices & wages at 6% even though inflation was at 7%, therefore people were still losing money
400
Why do you only include final goods & services for calculation of GDP/GNP?
If you count more than final goods & services GDP/GNP will be overstated due to double counting
400
Which of the following activites are included in GDP, leisure or environment
trick question, none of the above
400
Which of the economy goal are part of micro economics & which are a part of macro economics
Efficiency & Equity - Micro economics Stability & Growth - Macro economics
400
What part of the business cycle has the highest unemployment
Depression/Trough
400
Who is the best teacher at uhs?
Ms Rine
500
Who is the OECD
Organization for Economic Co-operation and Development, they define GDP
500
What happens to GDP when excluded activities are not accounted for
Excluded activities result in understated GDP
500
Which economic goals are focused in the market economy and which are focused in the command economy
Growth & Efficiency - Market Stability & Equality - Command
500
On the business cycle graph what variables are on the axis
Real GDP & Time
500
Which Economic System tries to achieve the goal of growth over all else
Market
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