GDP & Business Cycle

Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?

• Expansion
• Peak
• Contraction
• Hot Cheetos

If GDP falls for at least 2 Quarters, it is called.

• Expansion
• Recession
• Clumsy
• Frictional

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• Leading economic indicator
• Full employment
• Unemployment rate
• Structural unemployment

The Lowest point in the business cycle

• Peak
• Trough
• Expansion
• Contraction

The HIGHEST Point in business cycle

• Peak
• Trough
• Contraction
• Recession

What term is used to describe an increase in the general price level?

• Deflation
• Monetary policy
• Stagnation
• Inflation

What is the formula for GDP?

• C + I + G + (X-M)
• C + I + G / (X-M)
• C + I + G + (population)
• C + I + G + (M-X)

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

• Prosperity
• Recession
• Depression
• Recovery

When a company buys new computers for their business, what part of the GDP equation does this count as? 

• Consumption
• Investments
• Imports
• Exports

Expectant parents buy supplies for the nursery.  Would this be included in GDP? 

• Yes - Consumer Spending
• Yes - Investment 
• No - Intermediate goods
• No - Non-market activity