Macroeconomics Test

Front

What is inflation?

Back

rise in general prices

Front

When inflation is high the _______________ of the dollar decreases

Back

purchasing power

Front

What is GDP?

Back

Gross Domestic Product

Front

A period of temporary economic decline during which trade and industrial activity are reduced.

Back

Recession

Front

The growing interdependence of the world’s economies, cultures, and populations, brought about by cross-border trade in goods and services, technology, and flows of investment, people, and information is the...

Back

Globalization

Front

GDP that is adjusted for inflation

Back

real GDP

Front

Point A on the graph is: trough, period of contraction, peak, recovery

Back

peak

Front

Point D on the graph is a period of: contraction, expansion, recession, decline

Back

expansion

Front

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

Back

inflation

Front

Which of the following might be a sign of an economic trough? low unemployment, recession, high GDP, stable CPI

Back

recession