Chapter 13 Economy's Performance

A period of prosperity in a business cycle in which economically it is at its highest point is known as _______

Which is one of the five major statistics to measure the national economy?

• Inflation

• National Income

• Consumer Price Index

• Producer Price Index

Select all of the following answer choices that are the four economic categories in which the spending in GDP is determined.

• Consumer

• Investor

• Government

• Net Exports

How does inflation affect purchasing power?

• No relationship

• Purchasing power of the dollar goes up

• Purchasing power of the dollar goes down

• Purchasing power of the dollar does not change

Which term best describes the dollar value of a nation's total domestic output that is adjusted to inflation?

Select all of the main items used to measure inflation.

• Aggregate demand curve

• Aggregate Supply Curve

• Business Cycle Model

• Consumer Price Index

The total amount that people, businesses, and government plans to spend is best described as _________.

The market basket that calculates the Consumer Price Index is updated how often?

• Every 2 years

• Every 5 years

• Every 8 Years

• Every 10 Years

How is aggregate demand determined?

• Compared to a price level

• Compared to the Producer Price Index

• Compared to the Consumer Price Index

• Compared to average prices in specific cities.

A part of the business cycle in which economic activity is slowing is known as _____.