You are to explain your answer to whether the statement is true or false?

1. Gross domestic product measures the value of all goods and services produced in an economy during a period of time.

2. The unemployment rate only goes down when the economy is in recovery.

3. The business cycle has four phases, depression, recession, recovery and expansion.

4. People who are discouraged workers are included in the unemployment rate.

5. The consumer price index is an accurate measure of the change in the purchasing power of money.

6. Consumption is the largest component of Gross Domestic product as measured by the income approach.

7. Absolute advantage is the same as comparative advantage.

8. Money is a social institution that eliminates the need for a double coincidence of wants.