Macroeconomic Factors and Historical Economic Events Quiz

Imports are not counted in GDP as they represent goods produced abroad.

Adam Smith's 'The Wealth of Nations' laid the foundation for modern economic thought.

Central banks adjust interest rates and regulate the money supply to influence economic activity through monetary policy.

Core CPI excludes volatile food and energy prices, providing a more stable measure of inflation.

During a recession, consumer spending typically decreases, contributing to economic contraction.

'Black Tuesday' refers to the stock market crash of 1929, leading to the Great Depression.

GDP measures a country's economic output within its borders over a specific time period.

Germany's hyperinflation during the Weimar Republic era led to economic turmoil and the adoption of the Rentenmark.

Stagflation is a rare economic condition characterized by stagnant growth, high inflation, and unemployment.

Stock market indices provide insights into future economic trends and are considered leading indicators.

Keynesian economics suggests active government intervention through fiscal policy to manage economic fluctuations.

David Ricardo's theory of comparative advantage explains the benefits of specialization and international trade.

Scarcity is the fundamental economic problem of having seemingly unlimited wants and needs in a world of limited resources.

Milton Friedman introduced the theory of rational expectations, suggesting that people make predictions based on all available information.

John Maynard Keynes is credited as the founder of modern macroeconomics for his work 'The General Theory of Employment, Interest, and Money.'