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.