Incorrect choiceNo; recessions are unlikely to cause widespread job loss, because they are short-term.√Correct choiceNo; a nation will normally also have periods of economic expansion that balance out recessions.XIncorrect choiceYes; recessions are associated with unemployment that will cause real GDP to decrease.p. 196 How do non-market goods cause inaccuracies in measuring the productivity of a nation?.√Correct choiceAn economy with many non-market goods may have its output underrated.p. 184 How do intermediate goods factor into the calculation of GDP?√Correct choiceIntermediate goods do not factor into GDP; only ±nal goods are counted.p. 174 Classify each concept as microeconomic or macroeconomic.The ±nancial decisions of a familyThe hiring decisions of a companyMicroeconomic
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The median income of a small stateThe unemployment rate of a nationp. 184 Which of the following products would count toward GDP?Counted in GDPA new bicycle sold by a bike shopBicycle handlebars sold to consumers as a customization itemNot counted in GDPBicycle handlebars sold to a bike manufacturerA used bicycle sold at a garage saleWhich three countries would you expect to have the highest standard of living? Drag the labels to the appropriate country.Drag each item above to its appropriate location in the image. Notethat every item may not have a match.Second-highest CanadaHighest usThird-highest japanMacroeconomic