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- 1. Multiple Choice
When the economy experiences an expansion, it is most likely the case that
GDP is increasing, unemployment is increasing, and inflation is decreasing
GDP is decreasing, unemployment is decreasing, and inflation is increasing.
GDP is increasing, unemployment is decreasing, and inflation is increasing
GDP is decreasing, unemployment is decreasing, and inflation is decreasing.
- 2. Multiple Choice
During recessions all of the following usually happen EXCEPT
inflation decreases
unemployment increases
GDP decreases
GDP increases
- 3. Multiple Choice
GDP is an important economic measurement because it
provides valuable data on unemployment rates.
provides valuable data on inflation rates.
measures the value of final goods and services produced by a country.
measures only the exports of a country
- 4. Multiple Choice
When calculating GDP, which of the following gets subtracted out?
Consumer spending
Business investment spending
Imports
Government spending
- 5. Multiple Choice
If GDP falls for at least 2 Quarters, it is considered what stage of the business cycle?
Expansion
Recession
Prosperity
Recovery
- 6. Multiple Choice
What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?
Leading economic indicator
Full employment
Unemployment rate
workforce
- 7. Multiple Choice
What term is used to describe an increase in the general price level?
Deflation
Monetary policy
Stagnation
Inflation
- 8. Multiple Choice
Which term describes the phases of expansion and contraction in an economy over time?
Recessions
Prosperity
Total product oscillations
Business cycles
- 9. Multiple Choice
Which would most likely occur during a period of recession?
Real gross domestic output falls
Unemployment rate falls
Production increase
Personal income increases
- 10. Multiple Choice
Which of the following is associated with peaks in the business cycle?
Relatively high levels of unemployment
Relatively low levels of unemployment
Recessions
Both High Unemployment and Recession
- 11. Multiple Choice
Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?
Expansion
Recovery
Prosperity
Recession
- 12. Multiple Choice
"Dunder Mifflin Corporation Fires 5,000 Employees" This headline affects which economic indicator the most?
Consumer Price Index
Consumer Spending
Unemployment rates
Inflation
- 13. Multiple Choice
"Business investment in capital goods (machinery for production) rises." The headline above affects which economic indicator the most?
Unemployment
Consumer Price Index
Inflation
Gross Domestic Product (GDP)
- 14. Multiple Choice
"Prices for consumer goods down 5% this year!" This headline affects which economic indicator the most?
Unemployment
Consumer Price Index
Productivity
Gross Domestic Product (GDP)
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