Unit 6

The largest component of GDP in the US economy is....

• consumption

• investment

• military spending

• net exports (X-IM)

A high CPI can be interpreted as ....

• the cost of goods/services declined

• the cost of goods and services did not change

• the cost of goods and services increased

• the US currency is more valuable now that it was

A bank teller has lost their job due to the invention of the ATM which means that this bank teller is now _______ unemployed

• frictionally

• structurally

• cyclically

• seasonally

If the USA CPI in 1990 was 150 and was 180 in 1995 then the inflation rate for 1995 was

• 25%

• 20%

• 30%

• -15%

A person who moved to a new state and took 2 months to find a new job experienced which type of unemployment?

• frictional

• structural

• cyclical

• natural

GDP is equal to

• C+i+G+Xn

• C+I+G+Xn

• i+g+X+M

• C-i+G-I

Which of the following actually decreases GDP?

• capital goods such as machinery

• imports

• value of domestically produced services

• government purchases of goods and services

The lowest point of the business cycle is the

• peak

• recession

• recovery

• trough

This shows the economy as goods/services flow from the factor markets to the product markets.

• business cycle

• circular flow

• AD/AS

• Phillips Curve

The rise of overall price levels is known as ...

• GDP

• CPI

• inflation

• unemployment