Questins:
1. Business cycles ccur when utput
A. falls belw its ptential
B. rises abve its ptential
C. is fixed at its ptential
D. fluctuates arund its grwth trend
2. Which f these statements best describes a cmplete individual business cycle?
A. mvement frm peak t trugh t peak
B. mvement frm recessin t expansin
C. mvement frm peak t recessin t trugh
D. mvement frm trugh t expansin then t peak
3. During the business cycle, the perid between the pint at which utput reaches a high and the pint at which it reaches a lw is called
A. a peak
B. a trugh
C. an expansin
D. a recessin
4. Which f the fllwing equals the market value f all final gds and services prduced in an ecnmy, stated in the prices f a specific base year?
A. Nminal GNP
B. Nminal GDP
C. Real GDP
D. Real GNP
5. Imagine a cuntry has a ppulatin f 210 millin. Within the cuntry there are 95 millin peple wh are emplyed wrkers, 50 millin peple incapable f wrking, and 60 millin peple capable f wrking, but nt actively lking. Based n this infrmatin, what is the unemplyment rate?
A. 3%
B. 5%
C. 7%
D. 9%
6. The unemplyment prduced by fluctuatins in ecnmic activity is called
A. frictinal unemplyment
B. cyclical unemplyment
C. natural unemplyment
D. structural unemplyment
7. New cllege graduates are mst likely t experience
A. frictinal unemplyment
B. cyclical unemplyment
C. natural unemplyment
D. structural unemplyment
8. The natural rate f unemplyment is defined as the
A. highest sustainable rate f unemplyment achievable under existing cnditins
B. unemplyment rate that is cnsistent with the ecnmy perating at its ptential utput
C. unemplyment rate at which there is n cyclical unemplyment
D. the rate f unemplyment that shuld exist accrding t plicy makers
9. The Cnsumer Price Index (CPI) is based n:
A. surveys f retail stre sales
B. a brad index f all items in GDP
C. surveys f the prices f items in a market basket
D. Bureau f Labr Statistics estimates f price changes
10. Unanticipated inflatin is a prblem fr sciety because it:
A. rewards lenders at the expense f brrwers
B. increases real prfits in the shrt term
C. rewards savers at the expense f spenders
D. benefits brrwers at the expense f lenders