Economic Indicators

Which is not an economic indicator

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

If the prices of many products _______, inflation is present.

• pull
• rise
• fall
• remain the same

What does GDP stand for?

• Gross Domestic People

• Gross Domestic Product

• Great Depression Prices

Which of the following is not a component of the business cycle?

• expansion

• contraction

• peak

• decline

• trough

During times of economic recession the unemployment rate usually

• stays around 25%.
• stays the same.
• increases.
• decreases.

The Consumer Price Index (CPI)

• consists of items a typical 18-year old might buy for himself or herself.

• is the average price of everything & used to calculate inflation.

• is used to calculate the unemployment rate.

• only increases during times of economic expansion.

During economic expansion or recovery, GDP will

• Decrease

• Increase

• Remain the same

• Produce

What does GDP measure?

• The amount of money spent in the economy.

• How much stuff businesses produced.

• All the things that people bought last year in the economy.

What is a "normal" inflation rate?

• 1-2%

• 2-3%

• 3-5%

• 2-6%

What is a "normal" unemployment rate?

• 3-5%

• 2-3%

• 5-8%

• 1-2%