Economics: Macroeconomics
Because GDP is supposed to give a picture of the whole economy, it includes every transaction that happens in a nation during a particular time frame
False
By the time the Great Depression struck, economists had become fairly expert at measuring the overall economy
False
Economics is classed as a traditional science, much like chemistry and physics
False
GDP comparisons of different countries are valid because all economies measure GDP using the same guidelines
False
GDP is made up of a total of two components: consumer spending and business spending
False
GDP is measured in number of things produced, no matter what those things were worth
False
Most economists agree that deflation has a strong positive effect on the economy
False
Officially, the word "depression" means that the economy has had at least two straight years of decreasing GDP
False
Policy makers generally have three major goals. These are: keep the economy growing, limit unemployment, and keep prices high
False
The goal for most nations is to have a 0% unemployment rate
False
The unemployment rate has a factor built in to account for people who work but are actually underemployed because they don't get many hours
False
"Nominal" GDP ignores inflation, but "real" GDP takes it into account
True
A "contraction" is when the economy is going too slow
True
Deflation happens when prices are falling
True
GDP figures indicate that the Greek economy was much worse in 2013 than it was in 2008
True
In the US, consumer spending is more than half of GDP
True
Macroeconomics is the kind of economics that shows up in the news most often
True
Officially, the word "recession" means that an economy has had at least six straight months of decreasing GDP
True
Suppose that a person is trained to make chariot wheels for a living but can't find a job doing it. This is an example of "structural unemployment"
True
The GDP growth rate and the unemployment rate tend to move in opposite directions—one falling while the other is rising
True
The business cycle is basically a series of booms and busts
True
The most important measure of an economy is GDP, which stands for gross domestic product
True
The true employment goal nations shoot for is to have no unemployment due to rexessions
True
The unemployment rate only includes unemployed people who are trying to become employed
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