Unit 5 Exam Review

Front

Avery is studying economic indicators for her class project. She learns that consumer spending is often used to measure which economic condition?

Back

employment

Front

What factor measures the condition of the economy? Options: fiscal policy, profit margin, price stability, financial cycle

Back

price stability

Front

When Olivia noticed that interest rates continued to increase to a high level, she realized the economy might experience a/an:

Back

recession

Front

Which components are used in the calculation of the gross domestic product? Options: land titles, net exports, projected expenses, intermediate goods

Back

net exports

Front

Lily notices that sales at her family's store are falling off, production and employment are in decline, and the general feeling among local businesspeople is that times are bad. This information indicates that the business cycle is in which phase?

Back

contraction

Front

Aria runs a small business where she buys products in bulk to sell in her store. She doesn't pay sales tax on these purchases to avoid what issue when calculating the GDP?

Back

double counting

Front

When Samuel noticed that his monthly expenses were increasing and his salary remained the same, he realized his purchasing power was decreasing. The economy will experience a period of: containment, contraction, emergence, expansion

Back

contraction

Front

In a bustling city, Zoe notices that many of her friends are working in jobs that don't fully utilize their skills and education. This situation indicates a problem in the economy, because underemployment means that:

Back

there are insufficient jobs for qualified people

Front

If William's bank doubles its interest rates on loans, the demand for money will:

Back

decrease

Front

Aiden noticed that the interest rates on his savings account rise and fall by a wide range on a regular basis. This often is an indication of:

Back

economic stability