EPF U4 Quiz: GDP, Business Cycles, and Unemployment

What are the three economic goals every society seeks to accomplish?

• full employment, stable prices, economic growth

• 6% inflation, 10% unemployment, slow economic growth

• Everyone employed, control inflation, flat economic growth

• Promote economic growth, full unemployment, limit inflation

What is the correct equation for GDP below?

• GDP = C + M + I + G

• GDP = C + I + G + (X-M)

• GDP = L + I + O + N

• GDP = Nx + Mx + C + M

Net Exports are ...

• Imports divided by exports

• Exports minus Imports

• Imports minus Exports

• Exports divided by imports

The most important measurement of a nations economic activity is...

• Employment Rate

• Population Control

• Gross Domestic Product

• Consumer Price Index

All of the following add to a nation's GDP EXCEPT

• Items purchased at a grocery store

• Items imported from another Nation

• Services rendered for payment

• Government payouts for goods and services

What are the four parts of the business cycle?

• Expansion - Peak - Sloth - Plummet

• Expansion - Retraction - Infraction - Sublaction

• Expansion - Peak - Recession - Trough

• Infraction - Trough - Recession - Peak

The period of the business cycle characterized by Businesses decreasing production, unemployment rising, consumer spending decreasing, and a fall in inflation is

• Expansion

• Peak

• Recession

• Trough

The highest point in the business cycle, characterized by low unemployment and high inflation is...

• Expansion

• Peak

• Contraction

• Trough

In order to count towards the unemployment rate, you must ...

• Be actively searching for a job

• Be of a working age

• Be able to work

• All options are true

When you are out of work because you have been replaced by a robot... that is...

• Structural (Technological Unemployment)

• Structural Unemployment

• Institutional Unemployment

• Frictional Unemployment