BUSINESS CYCLES & GDP

Question 1

How many stages are there in the business cycle?

Accepted Answer

4

Question 2

What is the major difference between real andnominal gross domestic product (GDP)? Real GDP:

Accepted Answer

Is adjusted for price-level changes using a price index

Question 3

Intermediate goods are excluded from GDP because

Accepted Answer

their inclusion would involve double counting.

Question 4

What part of the business cycle is this?

Accepted Answer

Recovery

Question 5

This part of the GDP equation includes purchases of capital goods to be used in production

Accepted Answer

Investment

Question 6

Which of the following is not a component of the Gross Domestic Product?

Accepted Answer

Interest

Question 7

Which of the following are NOT one of the four states in a business cycle?

Accepted Answer

Deficit

Question 8

As used in the context of GDP calculation, investment would include

Accepted Answer

business spending on physical capital, new homes & inventory

Question 9

How is GDP calculated?

Accepted Answer

C+I+G+(X-M)

Question 10

What is the gross domestic product value for a nation divided by the nation’s total population?

Accepted Answer

Gross Domestic Product Per Capita

Question 11

Which of the following statements about gross domestic product (GDP) is wrong?

Accepted Answer

GDP is NOT=goods/services produced by foreigners in country.

Question 12

What part of the business cycle is this?

Accepted Answer

Recession

Question 13

Measures GDP in current dollars

Accepted Answer

Nominal GDP

Question 14

GDP can be used to measure...

Accepted Answer

Standard of living

Question 15

Gross Domestic Product (GDP):

Accepted Answer

Total value of all final goods and services

Question 16

A business cycle:

Accepted Answer

is a way of describing a series of peaks & troughs in GDP

Question 17

A period when the economy is growing and the GDP is rising

Accepted Answer

Expansion

Question 18

A good used to produce a finished product.

Accepted Answer

Intermediate goods

Question 19

What's not included in GDP?

Accepted Answer

Nonproduction transactions, Intermediate goods, Non market and illegal activities

Question 20

What is Real GDP?

Accepted Answer

Gross Domestic Product expressed in unchanging prices., The value of final goods & services adjusted for inflation.

Questions 20