CAB 3

Inflation reduces the purchasing power of money.

• true

• false

Unemployment statistics are an important indicator of economic activity.

• true

• false

Every business cycle includes a depression.

• true

• false

The Great Depression was an economic trough that spanned about ten years.

• true

• false

The United States has a very low GDP compared to other countries

• true

• false

What is the term for figures used to measure economic performance?

• economic indicators

• national numbers

• gross domestic product

• business cycle

What does gross domestic product measure?

• unemployment rate

• budget surplus

• budget deficit

• value of goods and services produced by a country

What is the total amount of money a government owes?

• budget surplus

• national debt

• inflation

• recession

What does downsizing cause?

• unemployment

• budget surplus

• inflation

• national debt

What does a nation have when it spends LESS than its income?

• recession

• depression

• budget surplus

• national debt