Economic Concepts and Indicators Quiz

Explore macroeconomic fundamentals with this quiz covering GDP, inflation, unemployment, fiscal policy, and more.

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What does GDP stand for?

Gross Domestic Product

Global Development Policy

Gross Development Product

General Domestic Product

Which of the following is NOT a component of GDP?

Government spending

Investment

Net exports

Household savings

What is inflation?

A decrease in the general price level of goods and services

An increase in the general price level of goods and services

A measure of economic output

A measure of income distribution

What is the Phillips curve?

A curve that shows the relationship between inflation and unemployment

A curve that shows the relationship between inflation and GDP

A curve that shows the relationship between interest rates and investment

A curve that shows the relationship between government spending and GDP

What is the unemployment rate?

The percentage of the population that is not in the labor force

The percentage of the labor force that is not employed

The percentage of the population that is employed

The percentage of the labor force that is employed

What is the Gini coefficient used for?

To measure income inequality

To measure economic growth

To measure inflation

To measure unemployment

What is the difference between nominal GDP and real GDP?

Nominal GDP is adjusted for inflation, while real GDP is not.

Real GDP is adjusted for inflation, while nominal GDP is not.

Nominal GDP includes all goods and services produced, while real GDP only includes final goods and services.

Real GDP includes all goods and services produced, while nominal GDP only includes final goods and services.

What is the difference between fiscal policy and monetary policy?

Fiscal policy involves changes in government spending and taxation, while monetary policy involves changes in the money supply and interest rates.

Monetary policy involves changes in government spending and taxation, while fiscal policy involves changes in the money supply and interest rates.

Fiscal policy and monetary policy are the same thing.

Fiscal policy and monetary policy have no impact on the economy.

What is the difference between a recession and a depression?

A recession is a short-term decline in economic activity, while a depression is a long-term decline.

A recession is a long-term decline in economic activity, while a depression is a short-term decline.

A recession is characterized by high unemployment, while a depression is characterized by low inflation.

A recession is characterized by low inflation, while a depression is characterized by high unemployment.

#10

What is the Laffer curve?

A curve that shows the relationship between tax rates and tax revenue