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Georgia Milestones: Macroeconomic Equilibrium Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following statements about the Great Recession is TRUE?

Question 2 2. What is the non-accelerating inflation rate of unemployment?

Question 3 3. Which of the following BEST defines inflation?

Question 4 4. If nominal GDP is $10 billion and the inflation rate is 5%, then what is real GDP?

Question 5 5. How do real GDP and nominal GDP differ?

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Question 6 6. According to this chart, what was the unemployment rate during the peak of the business cycle?

Question 7 7. What happens to economic output as measured by GDP during a recession?

Question 8 8. What is full employment GDP?

Question 9 9. What is the equation for the GDP deflator?

Question 10 10. Classical economists also refer to full employment as _____.

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Question 11 11. Why is unemployment not equal to zero at the full employment level of output?

Question 12 12. Which of the following statements regarding recessions is FALSE?

Question 13 13. How do increases in the price level impact GDP?

Question 14 14. Which of the following are the two phases and the two turning points of the business cycle?

Question 15 15. What's a depression?

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Question 16 16. Which of the following statements regarding full employment GDP is FALSE?

Question 17 17. What happens to real GDP, prices and unemployment at the peak of a business cycle?

Question 18 18. What common rule of thumb do economists use to define a recession?

Question 19 19. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 20 20. How do the effects of the Great Depression and the Great Recession compare to each other?

Georgia Milestones: Macroeconomic Equilibrium Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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