Multiple Choice
If an economy experiences a decrease in the money supply, what is most likely to happen to short-run unemployment?
38
views
1. Introduction to Macroeconomics
Introduction to Economics
Struggling with Macroeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Consumption, investment, government spending, exports, and imports are components of which macroeconomic measure?
A
Unemployment Rate
B
Gross Domestic Product (GDP)
C
Interest Rate
D
Consumer Price Index (CPI)
Verified step by step guidance1
Identify the components listed in the problem: consumption, investment, government spending, exports, and imports.
Recall that these components are used to calculate a key macroeconomic measure that reflects the total economic output of a country.
Understand that the measure which sums consumption (C), investment (I), government spending (G), and net exports (exports (X) minus imports (M)) is the Gross Domestic Product (GDP).
Express the GDP formula as: \(GDP = C + I + G + (X - M)\).
Recognize that the other options (Unemployment Rate, Interest Rate, Consumer Price Index) do not use these components directly in their calculation.
4:30mWatch next
Master Defining Economic Terms: Scarcity, Trade-offs, and Opportunity Costs with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Introduction to Economics practice set
Problem sets built by lead tutorsExpert video explanations