Quiz: GDP, Unemployment, & Inflation

Jaelyn is laid off her job due to a down-turn in the economy (i.e. a recession).

• Cyclical Unemployment

• Structural Unemployment

• Seasonal Unemployment

• Frictional Unemployment

The Kia car maker just replaced James with a robot that can do the job 5 times as fast. James is now unemployed.

• Frictional Unemployment

• Cyclical Unemployment

• Technological Unemployment

• Seasonal Unemployment

Brian is a life guard at the beach. Because it is now winter, he is currently not working and looking for another job.

• Frictional Unemployment

• Structural Unemployment

• Seasonal Unemployment

• Cyclical Unemployment

Who among the following would be considered as unemployed?

• A graduating student of legal age to work

• An entrepreneur in the process of starting a new business

• A secretary who has resigned from work & looking at job ads

• A housewife running 2 internet shops at the same time

Most countries try to maintain an inflation rate of ______ per year.

• One percent or less

• Two to three percent

• Four to five percent

• Six to seven percent

Which of the following is NOT one of the components of Gross Domestic Product (GDP)?

• Consumption

• Producer Price Index

• Government spending

• Investment

Which of the following causes of inflation is often described as “too much money chasing too few goods”?

• Demand-pull inflation

• Cost-push inflation

• Demand-push inflation

• Cost-pull inflation

When inflation spirals out of control, it is called ​ (a)   (when prices increase by more than 50% per month).

• hyperinflation
• deflation
• inflation
• stagflation

Which of the following is an example of inflation?

• The price of an iPhone rises as demand increases.

• The price of a TV remains constant as quality improves.

• The average price of a laptop decreases as the money supply increases.

• The average price of groceries increases following an increase in the money supply.

When inflation is high the _______________of the dollar decreases

• cost value
• purchasing power
• importance
• validity