Chapter 20 Post Quiz
Overview of Macroeconomics

Matching Questions:

Match the terms on the left with the definition in the column on the right. Enter the lowercase letter of that definition in the box to the left of the question number.

	1. Gross domestic product (GDP)	a. the percentage of the labor force that is unemployed.
	2. Real GDP	b. GDP measured in constant or invariant prices.
	3. Nominal GDP	c. measures the cost of a basket of goods bought by the average urban consumer.
	4. Potential GDP	d. occurs when prices decline.
	5. Unemployment rate	e. the maximum amount the economy can produce while maintaining price stability.
	6. Labor force	f. denotes the rate of growth or decline of the price level from one year to the next.
	7. CPI	g. the measure of the market value of all final goods and services produced in a country in a given year.
	8. Rate of inflation	h. all individuals employed or unemployed and seeking a job.
	9. Deflation	i. GDP measured in actual market prices.
	10. Hyperinflation	j. carried out by the central bank by managing the economy's money, credit, and banking system.
	11. Fiscal policy	k. a rise in the price level of more than a thousand percent per year.
	12. Monetary policy	l. the means of exchange and a method of payment.
	13. Money	m. denotes the use of taxes and government spending in order to achieve macroeconomic goals.
	14. Net exports	n. exports minus imports.
	15. Aggregate supply	o. the total quantity of goods and services that an economy's firms willingly produce in a given year.