Unit 3: Macroeconomics

Topic 3.1: Measuring Economic Activity and Illustrating Its Variations Questions

Practice 20 exam-style questions for IB Economics Topic 3.1. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.

11 mark
The business cycle refers to:
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24 marks
Explain the expenditure components of GDP.
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31 mark
Real GDP differs from nominal GDP because real GDP:
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44 marks
Explain the expenditure components of GDP.
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51 mark
During the expansion phase of the business cycle, which of the following is most likely?
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61 mark
During the expansion phase of the business cycle, which of the following is most likely?
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71 mark
A recession is typically defined as:
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84 marks
Describe the four phases of the business cycle.
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94 marks
Distinguish between nominal GDP and real GDP.
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101 mark
Gross domestic product (GDP) measures:
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111 mark
Real GDP differs from nominal GDP because real GDP:
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121 mark
A recession is typically defined as:
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134 marks
Describe the four phases of the business cycle.
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141 mark
The business cycle refers to:
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154 marks
Distinguish between nominal GDP and real GDP.
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161 mark
Gross domestic product (GDP) measures:
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171 mark
A GDP deflator is used to:
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181 mark
When comparing GDP between countries, it is preferable to use GDP per capita at PPP because:
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194 marks
Explain two items that are excluded from GDP calculations and why.
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201 mark
If nominal GDP increases by 8% and the inflation rate is 3%, real GDP has increased by approximately:
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