Unit 2 Review (Intro)

Which economic indicator measures the amount of goods or services produced in a country in a year?

• Unemployment

• Gross Domestic Product (GDP)

• Inflation

• National Debt

Which economic indicator measures the amount of money that the government owes?

• Budget deficit

• Budget Surplus

• National Debt

• Gross domestic product

Which stage of the business cycle would include a PEAK (high point) of economic activiy?

• Recession

• Depression

• Recovery

• Prosperity

During which stages in the business cycle would we expect the unemployment rate to go down?

• Prosperity

• Recession

• Depression

• Recovery

Which economic indicator would show a RISE in the prices of goods?

• Gross Domestic Product

• Unemployment

• Inflation

• Deflation

When the government brings in more money than it spends in a year, it has a ___________

• Budget Surplus

• Budget Deficit

• National Debt

• Deflation

A _________ is a stage in the business cycle when the economy is in a prolonged downturn for a long period and hits the very bottom of the cycle

• Recession

• Depression

• Recovery

• Prosperity

The __________ is the level of material comfort in a country. It is measured by he amount of goods and services available to each person.

• Gross Domestic Product

• Standard of Living

• Inflation

• Budget Surplus

When the economy begins to slow down, it is entering a ________ stage of the business cycle

• Recovery

• Prosperity

• Depression

• Recession

When the prices of goods in an economy go down, there is ____________

• Deflation

• Inflation

• Standard of Living

• Budget Surplus