Macroecon Chapter 5

business cycles

Alternating periods of macroecon expansion and contraction are known as:

vary in duration and magnitude.

Business cycles:

spent; saved

Disposable personal income can either be _____ or ______.

spending; income

GDP can be found either by adding up all of the ______ or all of the _____ in the economy.

outside the US by US citizens; inside the US by foreign citizens

GNP includes outputs produced _____ but it does not include outputs produced _____.

final goods and services produced in the US by labor and property.

Gross domestic product is the total market value of all:

$25,000; $23,000; $18,000

Last year, Marian earned $25,000, paid $2,000 in taxes, and saved $5,000. Marian's personal income is _______, disposable personal income is __________, and consumption spending is ________.

a six-pack of beer

Non durable good:

.81

We are least likely to be heading into a recession when the National Activity Index equals:

it is a leading indicator of the business cycle.

One important reason economists track business investment is that:

is a weighted average of 85 indicators of national economic activity.

The National Activity Index:

personal consumption expenditures.

The expenditure category that accounts for the largest share of GPD is:

circular flow diagram

The idea that all income ultimately goes to households, which then use it to buy goods and services from firms, is central idea of the:

The Conference Board.

The leading economic index is produced by:

Simon Kuznets

devised the gross national product as a way of measuring a nation's economic output.

is a part of US GNP

The value of the cars that the Ford Motor Company produces in a German plant:

personal consumption plus gross private investment plus government spending plus net exports.

Total spending in an economy is the sum of:

the Great Depression.

Which of the following events has significantly influenced the development of macroecon ideas?

a change in business inventories.

Which of the following is an example of gross private domestic investment?

spend the money or put it into savings.

Which of the following two things can people do with money received as disposable personal income?