Test Review - Unit 4 Business and Economic Growth

What 2 types of unemployment make up the Natural Rate of Unemployment

• Structural and Frictional

• Structural and Cyclical

• Cyclical and Frictional

• General and Cyclical

What is a continuous rise in price levels over time?

• Gross Domestic Product

• Inflation

• Unemployment

Which of the following is used to calculate GDP?

• Used textbook

• IMB stocks

• Toaster made in Mexico

• New Prius assembled in Texas

What is subtracted when calculating GDP?

• Exports

• Consumer spending

• Imports

• Investment

When unemployment is increasing and production is decreasing a country's economy is heading into a ___________

• Recession

• Expansion

• Development

• Peak

When unemployment is decreasing, production is increasing, inflation may also be increasing a country's economy is heading into an ___________

• Recession

• Expansion

• Development

• Peak

When an economy is in a recession and moving toward a trough it is said to be which of the following

• Contraction

• Expansion

• Peak

• Trend

Which type of unemployment is when you are between jobs or first looking for a job?

• Frictional

• Structural

• Cyclical

Which type of unemployment is it when you must get retrained because your job has been lost because of new technology or changes in competition or regulation

• Frictional

• Structural

• Cyclical

Which type of unemployment is it when you are laid off because of a downturn in the economy?

• Frictional

• Structural

• Cyclical