#1
What does GDP stand for?
Gross Domestic Product
ExplanationMeasurement of a country's economic performance.
#2
Which of the following is NOT a component of GDP?
Household savings
ExplanationNot included in GDP calculation.
#3
What is inflation?
An increase in the general price level of goods and services
ExplanationRise in overall prices over time.
#4
What is the Phillips curve?
A curve that shows the relationship between inflation and unemployment
ExplanationIllustrates trade-off between inflation and unemployment.
#5
What is the unemployment rate?
The percentage of the labor force that is not employed
ExplanationIndicator of joblessness in an economy.
#6
What is the Gini coefficient used for?
To measure income inequality
ExplanationIndicator of wealth distribution.
#7
What is the difference between nominal GDP and real GDP?
Real GDP is adjusted for inflation, while nominal GDP is not.
ExplanationReal GDP accounts for inflation's impact.
#8
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.
ExplanationGovernment's tools for influencing the economy.
#9
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.
ExplanationVaried severity of economic downturns.
#10
What is the Laffer curve?
A curve that shows the relationship between tax rates and tax revenue
ExplanationIllustrates optimal tax rate.