Measuring Economic Activity

Question 1

Identify one of the 4 categories of the GDP

Accepted Answer

Government Spending

Question 2

The demand for products and services ____________ during a recession

Accepted Answer

Lowers

Question 3

During a depression, the unemployment rate is high

Accepted Answer

True

Question 4

The cost of borrowing money is called

Accepted Answer

interest rates

Question 5

Deflation is decrease in the general level of prices

Accepted Answer

True

Question 6

Measurement of Consumer Spending : Retail Sales & _____________

Accepted Answer

Personal Income

Question 7

What is a country’s total dollar value of all final goods and services produced in one year

Accepted Answer

GDP

Question 8

During deflation, the demand for products and services ___________ the supply

Accepted Answer

is lower than

Question 9

CPI a number that compares prices in one year with some earlier base year.

Accepted Answer

True

Question 10

During the prosperity economic cycle, demand for products and services

Accepted Answer

Increase

Questions 10