The Statistic Most Often Used by Economists to Measure the Value

question 73

Multiple Choice

The statistic most often used by economists to measure the value of economic activity is ________.

• A)GDP
• B)the CPI
• C)labor-force participation rate
• D)the nominal interest rate
• E)the real interest rate

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Definitions:

Budget Enforcement Act

Legislation intended to enforce strict budgetary controls on federal spending, aiming to reduce the fiscal deficit.

Budget Deficit

A budget deficit occurs when a government's expenditures exceed its revenues over a specified period, leading to borrowing or the use of saved reserves to meet the shortfall.

Government Budget Deficit

occurs when a government's expenditures exceed its revenues, leading to borrowing or debt accumulation.

U.S. Treasury

The government department responsible for managing federal finances, including issuing currency and managing public debt.