A tire maker sells tires to an auto factory, which installs them in new cars. How is the tire sale counted in GDP?

A family sells its used sofa to a neighbor for $200, with no dealer involved. How does this transaction affect this year's GDP?

A city pays a construction company to build a public library. In the expenditure approach to GDP, this payment is classified as what?

A household buys a $900 smartphone made in South Korea, and no domestic services are included in its price. What is the effect on U.S. GDP?

A bakery produces bread in December but sells it in January. When does the bread's production first count in GDP?

A Japanese-owned company builds cars at a plant in Ohio. The cars are sold to U.S. buyers. Which country's GDP includes the production at the Ohio plant?

In 2024, an economy produces 100 bicycles at $200 each. In 2025, it produces 100 bicycles at $220 each. Using 2024 prices as the base year, what happened from 2024 to 2025?

Nominal GDP is $720 billion and the price index is 120, with 100 as the base-year index. What is real GDP in base-year dollars?

A nation has GDP of $900 billion and a population of 3 million people. What is its GDP per capita?

A country's GDP rises from $500 billion to $540 billion while its population rises from 5 million to 6 million. What happens to GDP per capita?

GDP measured using the prices that exist during the year being measured is called what?

For eight quarters, real output rises, firms add workers, and consumer spending increases. What business-cycle phase is described?

Real output reaches its highest point after a long period of growth, and firms expect growth to slow next quarter. What phase has the economy reached?

Factories cut production, layoffs increase, and real GDP declines for several quarters. What phase is this?

After months of falling output, production and employment reach their lowest levels before beginning to improve. What phase is described?

An economy has just passed through a trough, and businesses begin increasing output and hiring again. What phase follows?

Complete the usual business-cycle order: expansion, peak, ___, trough.

Jordan left a job in Denver and is actively searching for work after moving to Atlanta. What type of unemployment is Jordan experiencing?

Self-checkout machines replace cashiers, and displaced workers need new skills for available jobs. What type of unemployment results?

A ski resort lays off lift operators every April and typically hires them back in November. What type of unemployment do the operators experience?

During a recession, a furniture factory lays off workers because households are buying fewer sofas. What type of unemployment is this?

A labor force includes 150 people, of whom 12 are unemployed and actively seeking work. What is the unemployment rate?

A town has 180 employed residents and 20 unemployed residents who are actively seeking jobs. What is the town's unemployment rate?

Nia has no job but submitted job applications during the last four weeks. How is Nia classified in the unemployment rate?

A market basket cost $250 last year and $260 this year. What was the inflation rate over the year?

Prices rise by 10 percent while a worker's paycheck stays the same. What happens to the purchasing power of that paycheck?

The overall price level falls for several months, so a dollar buys more goods than before. What is this situation called?

A market basket cost $200 in the base year and $230 this year. With the base-year CPI set at 100, what is this year's CPI?

Households sharply increase spending after receiving larger paychecks, but firms cannot quickly increase output. What type of inflation is most likely?

Oil prices rise sharply, increasing shipping and manufacturing costs across many industries. What type of inflation may result?

A country builds reliable roads, ports, and power lines that allow firms to move inputs and products more efficiently. How is long-run economic growth affected?

A manufacturer trains employees to use new software that lets the same workforce produce more units each day. What source of growth has increased?

Ten workers produce 100 tables per day. After a process improvement, the same ten workers produce 120 tables per day. By what percentage did labor productivity increase?

A household of four earns $28,000, while the published poverty threshold for a household of that size is $30,000. How is the household classified for that year?

In Distribution A, the top 20 percent receives 50 percent of income and the bottom 20 percent receives 4 percent. In Distribution B, those shares are 35 percent and 10 percent. Which has the larger top-to-bottom income gap?