In the long run, the most important factor shifting the aggregate supply (AS) curve is

	aggregate demand (AD).
	a change in consumer confidence.
	productivity growth.
	inflation.

Question

Gross domestic product (GDP) is defined as the

	the sum of all currency and coins in circulation.
	the value of all final goods and services produced by a government.
	the value of all final goods and services produced domestically.
	the value of all final goods and services produced anywhere in the world by a nation's firms.

Question

Keynes' law advocates the reduction of taxes in order to

	fight inflation.
	increase consumer spending.
	decrease business investment.
	lessen the budget deficit.

Question

Which of the following statements is true?

	GDP does not include production that is exchanged in the market, but it does cover production that is not exchanged in the market.
	GDP includes spending on recreation and travel, but it does not consider leisure time.
	GDP does not include newly produced goods and services, but counts the buying and selling of previously existing assets.
	GDP includes production of solar panels but does not include the cost of installation.

Question

_______________, which is measured by the change of gross domestic product, ultimately determines the prevailing standard of living in a country.

	Trade balance
	Inflation
	Education
	Economic growth

Question

Intermediate goods are NOT included in gross domestic product (GDP) calculations because

	they have very low value added.
	they are part of the black market.
	they are made from foreign raw materials.
	they are used in the production of final goods and would then be counted twice.

Question

___________ is a subcategory of business investment that refers to the goods produced by one business that have yet to be sold to consumers, and are either still sitting in warehouses or on store shelves.

	Services
	Structures
	Inventories
	Durable goods

Question

Which of the following is counted in the gross domestic product in a given year?

	The sale of Amazon stock
	The sale of a used Mustang convertible
	The dollar value of the housework done by a stay-at-home mom
	The sale of a new guitar

Question

Gross Domestic Product (GDP) is highly correlated with other economic activities. Therefore, we can assume that if the GDP increases, unemployment will likely decrease.

	True
	False

Question

In the United States, a growth rate, as measured by GDP, of _______ is considered good.

	3%
	5%
	7%
	11%

Question

The key difference between nominal GDP and real GDP is

	nominal GDP measures actual productivity.
	nominal GDP adjusts for inflation.
	real GDP excludes imports and exports.
	real GDP adjusts for inflation.