Exam 5: Introduction to Macroeconomics

Which of the following is included in gross private domestic investment?

Alternating periods of macroeconomic expansion and contraction are known as:

The effects of the informal economy are all negative.

Economists believe that changes in investment spending are important for forecasting the business cycle because:

Which of the following is true within the circular flow of economic activity?

The Leading Economic Index fell in July, August, and September, the same three months compared to the previous year. Therefore, a recession in the near future should be expected.

The largest category when using the income approach to calculate GDP is:

When investors believe an economic slowdown is likely, they buy short-term bonds to lock in interest rates.

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

Which of the following would NOT be included in the GDP accounts?

Which is NOT a main use of the national income and product accounts?

What information does the National Bureau of Economic Research use to declare that a recession has begun?

Which phase of the business cycle occurs immediately before a trough?

A drawback to producing a set of national income and product accounts statistics that take into account factors such as environmental changes and nonmarket transactions is a greater cost in their preparation.

The "business cycle" refers to:

The National Bureau of Economic Research determines that a recession is over:

Sheila charges $100 to proof term papers for other college students. She does not declare this income on her tax return. Sheila is part of the informal economy.

Within the circular flow diagram, the arrows pointing counterclockwise represent flows of real items.

Depreciation is included in the GDP.

GDP per capita is found by dividing GDP by population.