Economics

The three statistics that are the main focus for those measuring macroeconomics health are: A. Real GDP, Inflation, and unemployment B. Real GDP, nominal GDP and Inflation C. nominal GDP, unemployment and gross private investment D. Real GDP, nominal GDP, and unemployment

A. Real GDP, Inflation, and unemployment

Inventories rise when: A. Actual demand for output is more than expected B. Actual demand for output is less than expected C. Actual supply of output is less than expected D. Actual demand for output is about the same as expected

B. Actual demand for output is less than expected

Transfer Payments are: A. excluded when calculating GDP because they only reflect inflation B. Excluded when calculating GDP because they do not reflect current production C. Included when calculating GDP because they are a category of investment spending D. Included when calculating GDP because they increase the spending of recipients

B. Excluded when calculating GDP because they do not reflect current production

Which of the following is an example of economic investment? A. Volvo buys an old factory building from General Motors B. Nike buys a new machine that increases shoe production C. Bill Gates buys shares of stock in IBM D. Warren Buffet buys U.S. savings bonds

B. Nike buys a new machine that increases shoe production

Real GDP measures the: A. total dollar value of all goods and services produced within the borders of a country using current prices. B. Values of final goods and services produced within the borders of a country, adjusts for inflation C. total dollar value of all goods and services consumed within the borders of a country, adjusted for price charges D. Value of all goods and Services produced in the World, using current prices

B. Values of final goods and services produced within the borders of a country, adjusts for inflation

Macroeconomics is mostly focused on: A. the individual markets within an economy B. only the largest industries in the economy C. the economy as a whole D. why specific businesses failures

C. the economy as a whole

In the treatment of U.S. exports and imports A. subtract exports, but add imports, in calculating GDP B. Subtract both exports and imports in calculating GDP C. Add both exports and imports in calculating GDP D. Add exports, but subtract imports, in calculating GDP

D. Add exports, but subtract imports, in calculating GDP

Which of the following statements is true? (Fluctuations-Recession, economic downturn, or inflation) A. Short-Run economic fluctuations are made worse because prices are flexible B. Short-Run economic fluctuations would be less severe if prices were inflexible C. If prices were fully inflexible, there would be no short-run economic fluctuations D. If prices were fully flexible, there would be no short-run economic fluctuations

D. If prices were fully flexible, there would be no short-run economic fluctuations

GDP Includes A. neither intermediate nor final goods B. both intermediate and final goods C. intermediate, but not final goods D. final, but not intermediate goods

D. final, but not intermediate goods