UNIT 3 REVIEW

The study of the economy as a whole is known as

• Macroeconomics
• Microeconomics
• Foreign Exchange

The components of GDP are ….

• consumption, investment, intermediate goods, and net exports.
• consumption, investment, government spending, and net exports.
• consumption, intermediate goods, government spending, and net exports.
• secondhand sales, intermediate goods, and non-market activities.

When there is high unemployment and rising prices, what occurs?

• Inflation
• Deflation
• Disinflation
• Stagflation

When Ford buys tires to produce cars to sell, we count this in GDP.

• True
• False

0% Unemployment is considered full employment in the United States

• True
• False

The Price level is increasing at a rate of 50% per month. This means the country is experiencing…

• deflation
• inflation
• hyperinflation
• disinflation

If the unemployment rate is currently 11%, then the economy is most likely experiencing …

• an expansion
• seasonal unemployment
• a recession
• a peak

Which of the following could cause a change in the U.S. business cycle?

• An increase in demand in the U. S.
• Consumer expectations of a recession in the near future.
• An increase in real GDP
• all of these

Which type of unemployment is caused by a change in technology?

• Seasonal
• Frictional
• Structural
• Cyclical

When someone loses their job because it only exists during certain times of the year, they are experiencing...

• Seasonal unemployment
• Frictional unemployment
• Structural unemployment
• Cyclical unemployment