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10 questions
What does GDP measure?
Which statement best describes inflation?
Why is real GDP often preferred over nominal GDP when comparing output across years?
If inflation is rising and the central bank wants to slow it down, which policy is most likely?
Which action is an example of fiscal policy?
A central bank buys government bonds in the open market. What is the most likely short-run effect?
A government increases spending during a recession to raise aggregate demand. What type of policy is this?
GDP includes the value of final goods and services produced within a country's borders.
A higher unemployment rate usually indicates that more people are finding jobs quickly.
If the central bank lowers interest rates, borrowing usually becomes cheaper for households and firms.