3.1 Economic Indicators & Measuring Economic Health

Multiple Choice

What is the key question in Macroeconomics?

• How healthy is our entire economy?

• What is the definition of Microeconomics?

• What is the focus of Macroeconomics?

• How do individual markets behave?

Multiple Select

What are the three main economic goals?

• Economic Growth

• Price Stability

• Low Unemployment

• High Inflation

Multiple Choice

When calculating GDP, which of the following gets subtracted out?

• Consumer spending

• Business investment spending

• Imports

• Government spending

Multiple Choice

Analyze the potential effects of a decrease in government spending on GDP.

• It would likely lead to an increase in GDP.

• It would likely lead to a decrease in GDP.

• It would have no effect on GDP.

• It would only affect the GNP, not the GDP.

Multiple Choice

Joe is an expert at repairing VCRs. However, due to a lack of customers, his business had to close. This is an example of...

• frictionally unemployed

• structurally unemployed

• cyclically unemployed

• seasonally unemployed

Multiple Choice

What does the Consumer Price Index (CPI) measure?

• Average change in prices

• Total cost of goods

• Consumer spending habits

• Market basket of goods

Multiple Select

What are the three main areas that CPI affects according to the image?

• Cost of living adjustments

• Interest rates

• Business decisions

• Tax rates

Multiple Choice

What are the limitations of CPI as mentioned in the image?

• Doesn't account for changes in consumer behavior

• May not perfectly reflect all population groups' expenses

• Doesn't measure asset prices like housing market or stocks

• All of the above

Multiple Choice

What are the key characteristics of the expansion phase in the business cycle?

• Economy grows, GDP rises

• More jobs created, unemployment falls

• Consumer confidence and spending increase

• All of the above

Multiple Choice

If an economy has increasing GDP, low unemployment rate, and increasing inflation, what is happening?

• It is in a slowdown

• The Government needs to fix the unemployment rate

• The FED should expand the money supply

• The economy is in an expansion phase of the business cycle

Multiple Choice

What are the key characteristics of the contraction phase in the business cycle?

• Economic activity slows down

• GDP rises

• Unemployment falls

• Consumers spend more

Multiple Choice

What is the significance of the Trough phase in the business cycle?

• It is the highest point of the cycle

• It indicates a recession

• It is the lowest point of the cycle

• It marks the end of the business cycle

Poll

How confident do you feel about this topic now?

• Very confident
• Somewhat confident
• Not confident