AP Macro Unit 2 Multiple Choice

which of the following is included in the calculation of the U.S. GDP?

A plane produced in the U.S. but sold in Mexico

which of the following is true regarding Gross Domestic Product?

GDP, adjusted for inflation, measures economic growth over time

which of the following will most likely decrease a country's Natural Rate of Unemployment

a decrease in unemployment benefits paid by the government

which of the following individuals is clearly considered unemployed?

a lawyer that sold his firm and is now looking for a job as a teacher

which of the following is true regarding the quantity theory of money

an increase in money supply or the velocity of money will increase nominal output

when calculating GDP, investment is best defined as

business spending on capital goods

which type of unemployment would most likely increase if workers are laid off due to a large decrease in consumer spending

cyclical

which of the following is true regarding unemployment

full employment occurs when cyclical unemployment is zero

which of the following is true regarding inflation

inflation decreases the purchasing power of a country's currency

the value of which of the following is counted in the U.S. GDP?

salary bonuses given to investment bankers

if a country's nominal percent change in GDP is positive, which of the following must be true?

the real GDP and/or price level has increased

if the labor force participation rate increased at the same time that the unemployment rate stayed the same, which of the following must be true?

the total number of jobs in the economy increased

which of the following is the best example of structural unemployment?

workers are fired because they do not have the specific skills employers value