open ended quiz

Question 1

what is gdp

Answer 1

market value of all final legal output produced in a country in one year

Question 2

gdp formula

Answer 2

consumer spending + business investment + government spending + [exports - imports]

Question 3

5 categories that don’t count in gdp

Answer 3

intermediate goods, second hand sales, purely financial transactions, unreported legal business activity, illegal business activity

Question 4

gdp vs gnp

Answer 4

gdp is produced in america
gnp is produced by america

Question 5

nominal gdp vs real gdp

Answer 5

real gdp takes inflation and price changes into account. it’s used to compare america to itself

Question 6

calculating real gdp

Answer 6

gdp - inflation

Question 7

what is inflation

Answer 7

a general rise in prices

Question 8

what is creeping inflation % (good inflation)

Answer 8

1-3%

Question 9

3 causes of inflation

Answer 9

demand-pull, cost-push, wage-price spiral

Question 10

3 consequences of inflation

Answer 10

your dollar buys less. spending habits change. speculation increases.

Question 11

groups hurt by inflation

Answer 11

fixed- income receivers, savers, creditors

Question 12

groups helped by inflation

Answer 12

flexible-income receivers, debtors, government

Question 13

what is unemployment

Answer 13

must not have a job and be actively seeking a job

Question 14

full employment (%)

Answer 14

5% unemployment

Question 15

5 types of unemployment (know what each type is too)

Answer 15

frictional, cyclical, structural, technological, seasonal