Economics - Chapter 13

A condition of slow economic growth and high unemployment – accompanied by rising prices, or inflation, or inflation and a decline in GDP.

• Inflation
• Deflation
• Stagnation
• Creeping Inflation
• Hyperinflation

An extreme and rapid rise in the price of goods and services

• Inflation
• Deflation
• Stagnation
• Creeping Inflation
• Hyperinflation

An increase in the overall price level of goods and services produced in an economy

• Inflation

• Deflation

• Stagnation

• Creeping Inflation

• Hyperinflation

As GDP increases, what does NOT increase? Choose two!

• Literacy and education

• Deflation

• Standard of living

• Health and life expectancy

• Market Value of Goods

Deflation is bad for who?

• Borrowers & Savers
• Businesses
• US Government
• Foreign Governments
• Nobody

Deflation is good for who?

• Borrowers & Savers
• Nobody
• US Government
• Foreign Governments
• Businesses

How would you define the CONTRACTION period of a business cycle?

• Period of economic growth
• I have no clue. Sorry!
• Period of economic decline
• Lowest level of economic activity
• Highest level of economic activity

How would you define the EXPANSION period of a business cycle?

• I have no clue. Sorry!
• Period of economic decline
• Lowest level of economic activity
• Highest level of economic activity
• Period of economic growth

How would you define the PEAK period of a business cycle?

• I have no clue. Sorry!
• Period of economic decline
• Lowest level of economic activity
• Highest level of economic activity
• Period of economic growth

How would you define the TROUGH period of a business cycle?

• I have no clue. Sorry!
• Period of economic decline
• Lowest level of economic activity
• Highest level of economic activity
• Period of economic growth