Economics Test GDP and Business Cycles questions and answers 100% verified.

Economics Test GDP and Business Cycles questions and answers 100% verified. GDP (Gross Domestic Product) - correct answers.The total market value of all final goods and services produced within a country/economy in a given year GNP (Gross National Product) - correct answers.Total market value of all final goods and services produced by Americans no matter where in the world they live Disposable Personal Income (AKA Disposable/Discretionary Income; DI) - correct answers.Income where you can determine its use. The amount of money you have to spend on essentials or invest, etc after taxes are paid Final Goods and Services - correct answers.Goods and Services sold to final or "ultimate" users (whatever's on the shelf or showroom floor). Final goods and services comprised of various components, for example pizza; it's the product of dough, cheese, sauce, pepperoni, etc. - correct answers.The pizza is the final good and the other stuff are the intermediate goods Intermediate good - correct answers.A good used to make a final good. They aren't counted in GDP to avoid double counting Double counting - correct answers.Counting a good more than once when calculating GDP Two ways to measure GDP - correct answers.Either by total spending on US production, or by total income received from that production Output expenditure model - correct answers.C+I+G(x-m) Can I get extra mayo? - correct answers.Consumption, Investment, Government spending, Exports, Imports Income Approach - correct answers.Method of calculating GDP by adding up all payments Real GDP - correct answers.GDP adjusted to reflect price-changes. Inflation must be considered when calculating GDP. Enables economists to determine whether it increased or decreased regardless of changes in the purchasing power of the US dollar (GDP with makeup off, doesn't look good) Nominal/Current dollar value GDP - correct answers.Expresses GDP in current prices of the period being measured. Doesn't indicate whether GDP increased as a result of price, or quantity of output. GDP may rise yet no increase in output occurs (GDP with makeup on, looks good) Limitations of GDP - correct answers.Illegal goods and services, underground economy, non-market activities, used goods Business Cycles - correct answers.Fluctuations or changes in market systems economic activity. Measured using GDP to assess how healthy the economy is by looking at increase or decrease in real GDP Expansion (recovery) - correct answers.Period of economic growth and increased business activity. Expansion - correct answers.•Employment increases/rises •Increase in Disposable income •greater output GDP rises Peak - correct answers.Point at which the economy is strongest Peak - correct answers.•Demand, production, and employment attain highest levels •Economy is considered to be prosperous Contraction (recession/depression) - correct answers.Business activity decreases. Real GDP falls Contraction - correct answers.•Business cut production, lay-off workers •Disposable Income decreases, less goods and services demanded •economy may enter recession Depression - correct answers.Severe decline in an economy's total production, accompanied by high unemployment lasting over a year