10 things I learned when taking our class online practice quizzes.
1. Economists divide gross investment into two subcategories: fixed investment and inventory investment.
2. To measure changes in prices over time, economists use price indexes.
3. Gross domestic product (GDP) is the total dollar value of all final goods and services produced within a country during one calendar year.
4. Personal consumption expenditures is one element of GDP.
5. To calculate national income, economists subtract subsidies and indirect taxes from net national product.
6. The business cycle is divided into four stages.
7. Many economists agree that the level of business investment, availability of money and credit, expectations about future economic activity, and external factors affect the business cycle.
8. Coincident indicators change as the economy moves from one phase of the business cycle to another.
9. Continued economic growth is important to the U.S. for a number of reasons.
10. Without long-term economic growth, a nation's standard of living declines.
11. As people's incomes increase, they generally pay more in taxes.
12. This is the reason that macroeconomists devote a great deal of time to examining ways to stimulate the economy.
13. The capital-to-labor ratio is the amount of capital stock available per worker.