GDP, Unemployment, and Inflation Econ Review

Front

What does GDP stand for?

Back

Gross Domestic Product

Front

All of the following are “natural” types/causes of unemployment EXCEPT: Structural, Frictional, Seasonal, Cyclical

Back

Cyclical

Front

What should the “normal” or “acceptable” inflation rate be?

Back

2-3%.

Front

What does GDP measure?

Back

The strength and growth of our economy

Front

What should the “normal” or “acceptable” unemployment rate be?

Back

3-5%

Front

What might someone say if they think minimum wage is a good thing?

Back

Minimum wage allows low-income workers to make enough money to survive.

Front

What might someone say if they think minimum wage is a bad thing?

Back

Minimum wage can lead to employers firing employees to cut costs.

Front

Which of the following best defines “inflation”?

Back

An increase in prices and a decrease in the value of money.

Front

Which of the following correctly identifies the effect that inflation has on the purchasing power of money?

Back

Inflation has a negative effect on purchasing power because the value of the dollar decreases.

Front

What is the definition of unemployment?

Back

Someone without a job, but who is looking.