1. Congress might lower taxes if the economy appears to be in
a. a period of expansion.
b. a recessionary period.
c. a period of increased employment.
d. a period of increasing GDP.
2. Which of the following best defines inflation?
a. The rapid increase in the price of a specific good, such as gasoline
b. A general, sustained upward movement of prices for goods and services in an economy
c. The fluctuation in revenue and expenditures caused by Congress and the president
d. An increase in the national debt caused by ongoing deficit spending
3. If the unemployment rate is declining, the economy is likely experiencing which one of the following?
a. A recession
b. An expansion
c. A depression
d. A contraction