EPF- Unit 2 Quiz

GDP is an important economic measurement because it

• provides valuable data on unemployment rates.

• provides valuable data on inflation rates.

• measures the value of final goods and services produced by a country.

• measures only the exports of a country

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• Leading economic indicator

• Full employment

• Unemployment rate

• workforce

Which term describes the phases of expansion and contraction in an economy over time?

• Recessions

• Prosperity

• Total product oscillations

• Business cycles

Which would most likely occur during a period of recession?

• Real gross domestic output falls

• Unemployment rate falls

• Production increase

• Personal income increases

Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?

• Expansion

• Recovery

• Prosperity

• Recession

When majority of stock prices are on the rise, it is a . . .

• Bull Market

• Bear Market

• Stable Market

• Flood Market

When majority of stocks are falling in price, it is a . . .

• Bull Market

• Bear Market

• Stable Market

• Flood Market

In a recession, the Fed would likely

• Increase the supply of money in the economy
• Decrease the supply of the money in the economy

If the economy is expanding too quickly, the Federal Reserve will institute which type of monetary policy?

• Expansionary
• Contractionary
• Equanimitous
• Whole Dollar

The primary role of the Federal Reserve Bank is to steer the economy by

• controlling the budget
• setting spending levels.
• controlling the money supply.
• loaning out money.