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AP Macroeconomics Measuring Economic Output — practice questions

Explore 112 free Measuring Economic Output questions in AP Macroeconomics Economics. Open each question or exercise to read its content, reference answers and available explanation.

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Measuring Economic Output questions and exercises with answers

Showing questions 1–30 of 112.

Gross domestic product is defined as the value of all final goods and services produced:Read the answer and worked solution →Economists measure growth by the percentage change in which measure?Read the answer and worked solution →The word real in real GDP signals that the figure has been adjusted for:Read the answer and worked solution →A country's production is broken into durable goods, nondurable goods, services, structures and:Read the answer and worked solution →Durable and nondurable goods together constitute which sector?Read the answer and worked solution →GDP per capita is calculated as GDP divided by the:Read the answer and worked solution →The manufacturing share of GDP is described as having moved from 45 percent in 1960 to:Read the answer and worked solution →The highest point of the economy, before a recession begins, is called the:Read the answer and worked solution →The lowest point of a recession, before a recovery begins, is called the:Read the answer and worked solution →The economy's movement from peak to trough and trough to peak is called the:Read the answer and worked solution →Only final goods and services are counted in GDP, which avoids counting the same output:Read the answer and worked solution →Comparing two countries' living standards is better done with GDP per capita than total GDP because it accounts for:Read the answer and worked solution →Structures are counted in GDP as one of the categories alongside goods, services and:Read the answer and worked solution →An economy whose nominal GDP rises while prices rise faster has real GDP that is:Read the answer and worked solution →A country with rapidly growing GDP but even faster population growth will see GDP per capita:Read the answer and worked solution →Because GDP counts output produced within a country, it excludes production located:Read the answer and worked solution →The peak and the trough are best described as the two:Read the answer and worked solution →A shift from manufacturing toward services shows up in GDP as a change in its:Read the answer and worked solution →Order the business cycleRead the answer and worked solution →Match each GDP termRead the answer and worked solution →Tap the categories of outputRead the answer and worked solution →Work the GDP arithmeticRead the answer and worked solution →True or false: measuring outputRead the answer and worked solution →Over the broadest area and longest time in history, the item people used as money was the:Read the answer and worked solution →Economies without money typically rely on:Read the answer and worked solution →Money acting as an intermediary between buyer and seller serves as a:Read the answer and worked solution →Money as the ruler by which we measure values is its role as a:Read the answer and worked solution →Gold, silver and cowrie shells, which have value beyond their use as money, are:Read the answer and worked solution →Money with no intrinsic value that a government declares legal tender is:Read the answer and worked solution →How quickly a financial asset can be used to buy a good or service is its:Read the answer and worked solution →

Worked practice questions

Gross domestic product is defined as the value of all final goods and services produced:

  1. Within a country in a year
  2. By one firm in a month
  3. Across the whole world
  4. By government offices only
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Correct answer: A. Within a country in a year

1. GDP needs a boundary in both space and time. 2. Economists measure the size of a nation's overall economy by its gross domestic product. 3. GDP is the value of all final goods and services produced within a country. 4. That production is counted for a given year. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_

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Economists measure growth by the percentage change in which measure?

  1. Average retail price level
  2. Real gross domestic product
  3. Total company profits made
  4. The number of new firms
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Correct answer: B. Real gross domestic product

1. Growth must be measured after stripping out price changes. 2. GDP is the value of all final goods and services produced in a year. 3. Economists measure growth by the percentage change in real gross domestic product. 4. Real means inflation-adjusted. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_

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The word real in real GDP signals that the figure has been adjusted for:

  1. Inflation
  2. Population
  3. Trade flows
  4. Tax rates
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Correct answer: A. Inflation

1. Prices rise over time, which can inflate a raw output figure. 2. Growth is the percentage change in real gross domestic product. 3. Real is defined directly as inflation-adjusted. 4. Nominal GDP has not been adjusted in that way. _Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_

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InflationMoney and BankingUnemploymentMonetary Policy and Bank RegulationExchange Rates and International Capital FlowsGovernment Budgets and Fiscal PolicyAggregate Demand and Aggregate SupplyDemand and Supply