GPD/Unemployment/CPI

What does GDP measure?

• The rate of employment in a country.
• The value of all goods and services produced in a country in a year.
• The rate of inflation in a country.
• The value of all imported goods in a country.

What is the difference between GDP and Real GDP?

• Real GDP is adjusted for inflation, while GDP is not.
• GDP is adjusted for inflation, while Real GDP is not.
• Real GDP includes imported goods, while GDP does not.
• There is no difference.

What is the Consumer Price Index (CPI)?

• A list of all goods produced in a country.
• A measure of the unemployment rate.
• A list of goods and services that most people buy, used to measure inflation.
• A measure of the country's GDP.

What does it mean if the total cost of the "shopping basket" in the CPI goes up?

• Inflation
• Deflation
• Recession
• Peak in the business cycle

What does the unemployment rate measure?

• The portion of people in the workforce who don't have jobs but are looking for one.

• The number of people who are retired.
• The number of people who are not looking for work.
• The number of people who are self-employed.

What is cyclical unemployment?

• Unemployment due to skills mismatch.
• Unemployment that rises during economic downturns.
• Unemployment when jobs are not needed all year round.
• Unemployment that occurs when people are switching jobs.

What is the peak in the business cycle?

• The economy is at its worst.
• The economy is at its best.
• The economy starts to slow down.
• The low point of the cycle.

What is the contraction in the business cycle?

• The economy is at its worst.
• The economy is at its best.
• The economy starts to slow down.
• The low point of the cycle.

What happens during the recovery/expansion phase of the business cycle?

• The economy starts to slow down.
• Businesses start to pick up, unemployment decreases, and GDP begins to rise.
• The economy is at its best.
• The economy is at its worst.

What is the business cycle?

• The process of starting a new business.
• The natural rise and fall of economic growth over time.
• The process of a business declaring bankruptcy.
• The timeline of a business's annual revenues.