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.

14 marks
Explain the expenditure components of GDP.
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21 mark
Gross domestic product (GDP) measures:
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31 mark
A recession is typically defined as:
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44 marks
Describe the four phases of the business cycle.
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54 marks
Distinguish between nominal GDP and real GDP.
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64 marks
Explain the expenditure components of GDP.
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71 mark
Real GDP differs from nominal GDP because real GDP:
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81 mark
The business cycle refers to:
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91 mark
During the expansion phase of the business cycle, which of the following is most likely?
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101 mark
A recession is typically defined as:
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111 mark
During the expansion phase of the business cycle, which of the following is most likely?
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121 mark
Real GDP differs from nominal GDP because real GDP:
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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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151 mark
Gross domestic product (GDP) measures:
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164 marks
Distinguish between nominal GDP and real GDP.
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171 mark
If nominal GDP increases by 8% and the inflation rate is 3%, real GDP has increased by approximately:
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184 marks
Explain two factors that could cause an economy to move from expansion into contraction.
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191 mark
Which of the following would NOT be included in the calculation of a country's GDP?
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201 mark
A negative output gap occurs when:
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