Chapter 5 Graded Quiz
Services constitute approximately ______ of GDP.
50%
Which equation summarizes the expenditures approach to measuring GDP? Question
GDP = C + I + G + (X - M)
Which of the following describes the informal economy?
It is largely unmeasured.
_____ are almost 70% of GDP, while _____ are about 15% of GDP.
Personal consumption expenditures; gross private domestic investments
The three types of consumption are:
durables, nondurables, and services.
The two approaches used by government in estimating GDP are:
expenditure and income.
What does the X represent in the following formula, used to calculate GDP? GDP = C + I + G + (X - M)
exports
Gross domestic product is the total market value of all:
final goods and services produced in the United States by labor and property.
Investment in structures, equipment, software, and net inventory is known as:
gross private domestic investment.
What does M represent in the following formula? GDP = C + I + G + (X - M)
imports
The National Bureau of Economic Research:
is a nonprofit research organization that dates business cycles in the United States.
The National Activity Index:
is a weighted average of 85 indicators of national economic activity.
An economic recovery that produces too few jobs to significantly reduce the unemployment rate is known as a(n):
jobless recovery.
Expenditures by individuals for durable goods, nondurable goods, and services is known as:
personal consumption expenditure.
The expenditure category that accounts for the largest share of GDP is:
personal consumption expenditures.
Macroeconomics was developed to explain:
the Great Depression
Which organization determines the beginning and end dates of a recession?
the National Bureau of Economic Research
A business cycle is:
the periodic fluctuation of economic activity.
The national income and product accounts do all of the following EXCEPT:
track changes in income distribution
During a typical economic recovery:
unemployment drops.