MACRO TEST- Review 1: Question Preview (ID: 24931)


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A decrease in the GDP means _______.
a) we are going through a contraction period.
b) we are heading towards a peak.
c) making more and more stuff.
d)

Gross Domestic Product is the only way the government monitors its performance.
a) True
b) False
c)
d)

The business cycles highest point is _________ period.
a) Peak
b) Trough
c)
d)

The business cycles lowest point is the _________.
a) Peak
b) Trough
c)
d)

The United States Government does not have an active role in the Economy.
a) true
b) False
c)
d)

Ford motor company buys new auto-making robots.
a) Consumption
b) Investment
c) Government
d) Not included in GDP

At the end of the year, a flour millling firm finds that its inventories of grain and flour are $10,000 above the amounts of its inventories at the beginning of the year.
a) Consumption
b) Investment
c) Government
d)

Apple builds a new factory.
a) Consumption
b) Investment
c) Government
d) Not included in GDP

A Broadway musical show had its final run, leaving all the actors unemployed.
a) Cyclical
b) Structural
c) Frictional
d) Seasonal

Consumer Price Index does not impact my life by__________.
a) the electricity I use
b) what I eat
c) what games I play
d)

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