APMacro: Chapter 5- GDP, Unemployment, Inflation

A peak in business cycle is indicated by ______ unemployment and _______ output.

• higher ; lower

• lower ; higher

• decreasing ; increasing

• increasing ; decreasing

The lowest point in the business cycle is

• peak

• boom

• trough

• recession

_______ occurs when people are in between jobs, entering and reentering the labour force.

• Cyclical unemployment

• Technological unemployment

• Frictional unemployment

• Seasonal unemployment

When individuals lose jobs due to a decline in the economy (aggregate demand), often during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment

Individuals are unemployed due to a lack in skills that modern industries need, change in technology.

• Cyclical Unemployment

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

When individuals are unemployed due to a change in season, e.g. Santa Claus after christmas.

• Seasonal Unemployment

• Frictional Unemployment

• Structural Unemployment

• Cyclical Unemployment

Sum of the employed and the unemployed

• Employed

• Unemployment

• Labor Force

The trade in exotic animals being illegally sold as pets is a multi-billion-dollar-a-year industry. Is this included in GDP?

• Yes - Consumer spending

• Yes - Government Spending

• No - Underground Economy

• No - Non-market activity

Farm helpers are unemployed when the cropping season is over.

• frictional

• cyclical

• structural

• seasonal

When individuals lose jobs due to a decline in the economy during an economic recession.

• Structural Unemployment

• Cyclical Unemployment

• Frictional Unemployment

• Seasonal Unemployment