Page 28 - Macroeconomics. book docx_Neat
P. 28
20. GDP is mainly used to:
A. Measure total economic activity
B. Measure individual income
C. Set interest rates directly
D. Control private firms
Answer: A
True or False
1. Macroeconomics studies the behavior of the economy as a whole.
Answer: True
2. GDP measures the value of intermediate goods only.
Answer: False
3. Gross Domestic Product includes goods and services produced within national
borders.
Answer: True
4. Nominal GDP is adjusted for inflation.
Answer: False
5. Real GDP reflects actual changes in production.
Answer: True
6. The expenditure approach calculates GDP by summing total income.
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