Economic Indicators, The Fed, Monetary Policy & Fiscal Policy

Front

Consumption + Investment + Government + Net Exports = ______?

Back

Gross Domestic Product

Front

Which term completes the list? The Five Stages of ______? 1. Growth 2. Peak 3. Recession 4. Trough 5. Recovery

Back

the Business Cycle

Front

Inflation would benefit which group of people the most? Options: people on fixed incomes, people who are in debt

Back

people who are in debt

Front

Which economic indicator best shows that deflation is occurring? Options: a decrease in interest rates due to home foreclosures, a decline in prices due to the lack of consumer spending

Back

a decline in prices due to the lack of consumer spending

Front

During a period of economic downturn, what is one characteristic that might be observed in the job market?

Back

unemployment tends to rise

Front

Quinton and Cam are studying the economy and notices a period when the real gross domestic product (GDP) stops falling. Which stage of the business cycle are they observing?

Back

Trough

Front

During which stage of the business cycle does the economy experience the highest inflation rate?

Back

Peak

Front

Where is Harley's country in the business cycle if the unemployment rate is 12% and inflation is 0.4%?

Back

Recession

Front

Which option best matches a gross domestic product (GDP) trend with a stage in the business cycle? decreasing GDP growth – period following a trough, accelerating GDP growth – period of expansion

Back

accelerating GDP growth – period of expansion

Front

Which statement describes the relationship between the consumer price index (CPI) and the business cycle?

Back

The CPI decreases during periods of contraction.