Econ Part 2 - Unit 13

The Lowest point in the business cycle

• Peak
• Trough
• Expansion
• Contraction

The HIGHEST Point in business cycle

• Peak
• Trough
• Contraction
• Recession

Which phase of the Business Cycle includes the economy slowing down?

• Prosperity
• Recession
• Depression
• Recovery

This economic model is called:

• The business cycle

• Supply & demand

• Production Possibilities Curve

• Circular Flow Model

Point 2 represents

• Contraction

• Expansion

• Peak

• Trough

What is the biggest difference between a "recession" and a "depression"?

• Length and severity of economic contraction

• Depressions are more frequent than recessions

• Depressions only happen when banks fail

• Recessions are more severe than depressions

The unemployment rate equals the number of persons:

• unemployed divided by the number employed.
• unemployed divided by the number in the labor force.
• unemployed divided by the population age 16 and over.
• not working divided by the population age 16 and over.

Inflation is defined as an increase in:

• real wages of workers.
• real GDP.
• the average price level.
• all consumer products.

Which is not an economic indicator

• GDP
• Inflation rate
• Law of supply and demand
• Unemployment rate

1.  What does the acronym GDP stands for? 

• Gross Domestic People 
• Gross Domestic Product
• Great Depression Prices