Macroeconomics Chapter 5 Quiz

When the National Activity Index is at zero, the economy is growing at _____ rates. Negative values imply _____ trends. Positive values imply that growth is _____ the long-term trend.

Historical; slowing; faster than

Macroeconomics was developed to explain:

the Great Depression.

(Table) According to the table, GDP for 2010 was:

$14,592.3 billion

Which of the following describes the informal economy?

It is largely unmeasured.

The study of macroeconomics as a specific discipline is due primarily to:

John Maynard Keynes.

Gross private domestic investment, which consists of _______________ and changes in private inventories, is an important determinant of _______________________.

investment in stocks and bonds; inflation (incorrect)

What component of U.S. GDP is usually negative in boom years?

net exports

The diagram that illustrates how households and businesses interact through product and resource markets is called the:

circular flow diagram.

Which of the following items would be considered a durable good?

refrigerator

The National Activity Index:

A weighted average of 85 indicators of economic activity.

A criticism of the National Bureau of Economic Research's business cycle dating committee is that it:

dates peaks and troughs only after the fact.

Everything else the same, if investment expenditures rise by $300 billion and imports increase by $300 billion, then GDP:

does not change.