#1
Which component of GDP represents the total value of goods and services produced by domestic factors of production in a country?
Gross Private Domestic Investment
Net Exports
Gross Domestic Product (GDP)
Consumption
#2
Which economic indicator is often used to assess the overall health of the labor market?
Consumer Price Index (CPI)
Gross Domestic Product (GDP)
Unemployment Rate
Inflation Rate
#3
Which component of GDP includes the value of all goods and services consumed by households?
Investment
Government Spending
Consumption
Net Exports
#4
What is the relationship between inflation and purchasing power?
Inflation increases purchasing power.
Inflation has no effect on purchasing power.
Inflation decreases purchasing power.
Inflation and purchasing power are unrelated.
#5
What is the purpose of the Consumer Price Index (CPI) in macroeconomic analysis?
To measure changes in the cost of living over time.
To analyze changes in the money supply.
To assess government fiscal policy.
To predict changes in interest rates.
#6
Which of the following is considered a lagging indicator in macroeconomics?
Gross Domestic Product (GDP)
Unemployment Rate
Consumer Price Index (CPI)
Stock Prices
#7
In the expenditure approach to calculating GDP, what does 'I' stand for?
Investment
Income
Interest
Inflation
#8
Which of the following is a leading economic indicator often used to predict future economic activity?
Gross Domestic Product (GDP)
Consumer Price Index (CPI)
Stock Prices
Unemployment Rate
#9
What does the term 'Ceteris Paribus' mean in the context of macroeconomic analysis?
All other things being equal or held constant.
Demand exceeds supply.
The law of diminishing returns.
The invisible hand of the market.
#10
What is the formula for calculating the unemployment rate?
(Number of unemployed / Labor force) * 100
(Number of employed / Labor force) * 100
Number of unemployed / Number of employed
Number of employed / Number of job vacancies
#11
What is the formula for calculating GDP using the production approach?
GDP = C + I + G + (X - M)
GDP = Compensation of Employees + Gross Profits + Taxes on Production and Imports - Subsidies
GDP = Y + C + I + G
GDP = GDP at market prices - Taxes on Products + Subsidies
#12
What does the term 'real GDP' account for that 'nominal GDP' does not?
Inflation
Government Spending
Exports
Consumption
#13
What is the primary difference between GDP and GNP (Gross National Product)?
GDP includes only domestic production, while GNP includes foreign production within a country's borders.
GDP includes both domestic and foreign production, while GNP includes only domestic production.
GDP and GNP are interchangeable terms with no significant difference.
GDP measures the total output of goods and services, while GNP measures only goods production.
#14
What is the primary function of the Federal Reserve in the United States?
Fiscal Policy
Monetary Policy
Trade Policy
Foreign Aid
#15
In the income approach to calculating GDP, what does 'Y' represent?
Gross Private Domestic Investment
Net Exports
National Income
Compensation of Employees