# Econ Unit 4 Review by yurtgc548

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• pg 1
Econ Unit 4 Review

UNDERLINED
Macroeconomics is the study of
the economy as a whole?
1. True                 50%   50%
2. False

se
ue

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Tr

Fa
The total sum of goods and
products produced in the past
1. GNP     twelve months 25% 25% 25%
25%
2. GDP
3. CPI
4. DPI

P

I

I
P

DP
CP
GD
GN
GDP excludes the value of these
items
1. Intermediary                  25% 25% 25% 25%
goods
2. Secondhand
goods
3. Underground
goods
4. All of these

e
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ds
od

s
od

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go

t
of
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d

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ia

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gr
rm

on

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Un
In
GDP is not as useful for
comparison to previous years as
1.   Current GDP                   25% 25% 25% 25%

2.   Future GDP
3.   Real GDP
4.   Crankin’ that
Soulja Boy

P
P
P

y
GD
GD
GD

Bo
al

ja
nt

re

Re

ul
tu
rre

So
Fu
Cu

t
ha
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nk
a
Cr
one should use GDP per capita
1. True                 50%   50%
2. False

se
ue

l
Tr

Fa
The total sum of all things
produced in the past twelve
1. GDP         months25% 25% 25%       25%
2. GNP
3. CPI
4. DPI

P

I

I
P

DP
CP
GD

GN
You can determine GNP by
taking GDP and
1. + foreign spending                 25% 25% 25% 25%

2. + foreign
purchases
3. + foreign spending
– foreign
purchases
4. + foreign

g

es
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...
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r..
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di

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ha

fo
en
purchases –

–f
rc
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g–
pu

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gn

n

s
gn

di

ha
ei

en
ei
or

rc
or

sp

pu
+f

+f
foreign spending
gn

gn
ei

ei
or

or
+f

+f
How often is a census taken in
the United States
1.   Every year                     25%          25% 25%                              25%

2.   Every four years
3.   Every five years
4.   Every ten years

rs
s

rs
ar

ar

ea

a
ye

ye

ye
ey
ry

n
ur
e

fiv

te
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Ev

ry
ry
y
er

e
e

Ev
Ev
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Which of the following predictions
of population growth is not true?
1. Americans are                                 25% 25% 25% 25%
getting older
2. Americans are
living longer
3. Americans are
more fertile
4. Americans are

e

c
r
er

t il
ge

ni
d

th
er
n
ol

lo

ee
ef
ng
more ethnic

g

or

or
in
tti

m
liv

m
ge

re

re
re
re

sa

a
a
a

ns
ns

an
ns

ic a
ic a

ic
ic a

er

er
er
er

Am

Am
Am
Am
The business cycle flows in this
order
1. Expansion, peak,                                       25% 25% 25% 25%
recession, trough
2. Expansion,
recession, peak,
trough
3. Expansion, trough,
recession, peak

..
..

.

...
ea

s. .
sio

t
ce
p
es

ft,
n,

re
ec
4. To the left, to the

le
sio

,
r

e
gh
k,

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th
u
ea

ec

o
ro

t
p

r

t

ft,
n,

n,

n,
left, to the right, to

le
sio

sio

sio

e
n

n

n

th
pa

pa

pa

To
Ex

Ex

Ex
the right
The increase in prices over time
is called
1.   Normal                    25%        25%        25%             25%
2.   Inflation
3.   Deflation
4.   Constipation

n

n
al

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io
m

at
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fla
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No

tip
De
In

ns
Co
CPI is used to measure
inflation
1. True               50%   50%
2. False

se
ue

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Tr

Fa
This describes the products used
to determine CPI
1.   GDP               25%    25%           25%            25%

2.   GNP
4.   None of these

P

P

t

e
ke
GD

GN

es
as

th
tb

of
ke

ne
ar

No
M
This describes inflation in excess
of 500%/year
1.   Creeping inflation                     25% 25% 25% 25%

2.   Normal inflation
3.   Hyperinflation
4.   Insane inflation

n

n

n
n

t io
tio

tio
t io
la

fla

f la
la
nf

nf

r in

in
gi

i

ne
al

pe
in

m

sa
Hy
ep

r

In
No
e
Cr
In order to be considered
unemployed, you must
1. Be trying to find a                        25% 25% 25% 25%
job
2. Be working a paid
job for less than
one hour a week
3. Be 16 or older
4. All of these

e
r
b

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de

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jo

he
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fo
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t
or

of
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b
fin

jo

l
16

Al
id
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gt

pa
yin

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kin
Be

or
w
Be
The difference between what
could be produced and what is
1. Real GDPbeing produced 25% 25% 25%
25%
2. GDP gap
3. Misery Index
4. 32

32
x
P

p

de
ga
GD

In
P
al

GD

ry
Re

ise
M
This monetary system requires a
double coincidence of wants
1.   Barter system                      25% 25% 25% 25%

2.   Monetary system
3.   System of a Down

em

m

em
n
ow
te
st

st
ys

sy

sy
ys
er

al
of
r

on
rt

ta

em
Ba

e

iti
on

st
M

Sy

Tr
This definition of money supply
refers to its use as a medium of
1. M1           exchange 25% 25% 25% 25%
2. M2
3. M ‘n’ Ms
4. MMM MMM MMM
MMM (that weird
song by Crash
Test Dummies)

1

2

s
M
M

M

...
M
’
‘n

M
M

M
M
M
M
M
M
M
M
M
This definition of money refers to
its use as a storer of value
1.   M1               25%   25%        25%    25%
2.   M2
3.   eMineM
4.   eMMys

1

2

ys
eM
M

M

M
in

eM
eM
Money that is backed only by the
word of a country is called
1.   Fiat money          25%       25%        25%          25%
2.   Flat money
3.   Flag money
4.   Slag money

ey

ey

ey

ey
on

on

on

on
tm

tm

gm

gm
Fia

Fla

Fla

Sla
This is the government insurance
1.   FCDI            25%     25%    25%   25%
2.   FDCI
3.   FIDC
4.   FDIC

C

IC
DI

CI

FID
FD

FD
FC
Chicago is the capital of
Illinois
1. True                 50%   50%
2. False

se
ue

l
Tr

Fa
Chicago has seven letters
1. True                50%   50%
2. False

se
ue

l
Tr

Fa

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