Exam 11: Measuring Macroeconomic Activity

What are the costs associated with inflation?

The system of accounts for each country, based on the circular flow, whose purpose is to measure the level of economic activity is called:

Commodities that last less than three years and may be consumed very quickly are called:

The value of currently produced final goods and services measured in current year prices is called:

U.S.GDP excludes underground activities.

If GDP rises:

The legislation passed in 1946 that requires governmental institutions to promote "maximum employment, production, and purchasing power" is called:

Table 11.1 -Refer to Table 11.1.What is the value of GDP?

A trade balance where exports exceed imports is called:

The market value of all currently produced final goods and services within a county in a given period of time by domestic and foreign supplied resources is called:

The income generated from the sale of the goods and services produced in the economy and paid to the individuals and businesses who supply the factors of production is called:

When shopping the consumer is interested in absolute prices.

Monetary policy is controlled by the U.S.Congress.

Spending on the structures, equipment, and software that provide the industrial capacity to produce goods and services for all sectors of the economy is called:

An economy with only the household and firm sectors is called:

In a closed economy firms sell goods and services to:

The rising phase of a business cycle measured by an increase in real GDP is called:

The falling phase of a business cycle measured by a decrease in real GDP is called:

The unemployment rate is calculated as follows:

Business cycles are officially dated by: