AP Econ Unit 2

If an automobile was manufactured and sold in 2006 and then sold used in 2007, what was the effect on gross domestic product in 2006 and 2007?

Increase in 2006, no change in 2007

Based on the economic figures in the table above, what is the value of gross domestic product, in billions of dollars?

$4,500

Based on the above table which of the following is most likely correct?

The labor force participation rate is 66.7 percent

Frictional unemployment occurs when which of the following happens?

A worker voluntarily quits a job to search for a better one

Which of the following can be concluded about the consumer price index (CPI) for this individual from 1993 to 1994?

It increased by 25%

Which of the following would most likely benefit from unexpected deflation?

Lenders

Which of the following can be concluded from the data above?

The economy was experiencing inflation during years 2 and 3

What are the nominal GDP and real GDP in 1993?

Nominal GDP is $96 and Real GDP is $90

The figure above shows data for actual real GDP and potential real GDP from year 1 to year 6 for an economy. Which of the following is true based on this figure?

The economy is in a recession in year 2

At year 5, we can say that their is what kind of output gap?

Positive