Unit 3 Economics Exam

 Unemployment that is directly related to changes in the business cycle is …

•  frictional unemployment

•  structural unemployment

•  cyclical unemployment

• seasonal unemployment

Macroeconomics is the study of ….

• the economy as a whole.

• individual components of the economy.

• the money supply and banking.

• unemployment and inflation.

Which of the following correctly lists the phases of the business cycle in order?

• peak, expansion, trough, recession.

• peak, expansion, recession, trough.

• peak, recession, expansion, trough.

• peak, recession, trough, expansion.

The components of GDP are ….

• consumption, investment, intermediate goods, and net exports.

• consumption, investment, government spending, and net exports.

• consumption, intermediate goods, government spending, and net exports.

• secondhand sales, intermediate goods, and non-market activities.

 Stagflation occurs when …

• both unemployment and an international event occur.

•  both inflation and an expansion occur.

• increasing inflation and increasing unemployment occur.

• demand-pull inflation creates economic change.

T/F: When a bakery buys eggs, flour, and butter to produce more goods to sell, we count this in GDP.

• True

• False

The total value of all finished goods and services produced domestically in a single year is ….

•  gross domestic product.

• gross national product.

• disposable income.

• frictional income.

The natural rate of unemployment in the U.S. is …

•  less than 3 percent.

•  3-4 percent.

• 4-6 percent.

•  greater than 6 percent.

The rate at which money is exchanged in an economy is known as…

•  price.

•  inflation.

• velocity of money.

• disposable income.

The price level is increasing at a rate of 50% per month. This means the country is experiencing…

•  inflation.

• deflation.

• disinflation.

• hyperinflation.