AP Macroeconomics - Unit 2 Quiz

Select the three macroeconomic policy goals from the following list.

• Keep the economy growing over time

• Limit unemployment

• Keep prices stable

• Raise unemployment

• Keep the economy shrinking over time

What measure shows how well the economy is doing over time?

• Gross Domestic Product

• Unemployment Rate

• Inflation Rate

Which of the following is NOT included in a country's GDP?

• Consumer Spending

• Business Spending

• Government Spending

• Net Exports

• Net Imports

What measure shows what percentage of the eligible workers do not have jobs?

• Gross Domestic Product

• Unemployment Rate

• Inflation Rate

When people are in the process of looking for a job after being fired or are transitioning to a new position, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

When people can't find a job because of a lack of demand for their skills or type of labor, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

When people can't find a job because the economy is not doing well due to a recession, this is called?

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

In the United States, a healthy economy should have an unemployment rate of 4-6%.

• True

• False

What measure shows the rate at which the money supply is increasing relative to the number of people using it?

• Gross Domestic Product

• Unemployment Rate

• Inflation Rate

An increase in the supply of money that leads to an increase in prices.

• Inflation

• Deflation