MacroEconomic Goals & Indicators Quiz 2022

Mary recently graduated from college and is actively looking for a job in her field of study. She has not yet found a job. How would her unemployment status be categorized?

• Structural

• Frictional

• She is not part of the Labor Force

• Cyclical

If you're trying to calculate inflation, which would you use?

• The value of the market basket at base year prices

• Changes in GDP since the base year.

• The value of the market basket at current year prices relative to the base year.

• The value of all consumer goods in the market

What phase of the Business Cycle is characterized by a rapid growth in the economy?

• Recession

• Peak

• Expansion

• Trough

In 2018, Mrs. Smith lost her job as a cashier when her company replaced her with an automated checkout system. What type of unemployment did Mrs. Smith experience in 2018?

• Structural

• Seasonal

• Frictional

• Cyclical

Inflation measures which economic goal?

• Stable prices

• Limit Unemployment

• Economic Growth

• All of the above

What phase of the business cycle is characterized by increasing real GDP and declining unemployment rates?

• Recession

• Expansion

• Peak

• Trough

Which of the following situations best illustrates a country successfully meeting its macroeconomic objectives? (two answers)

• Italy experiences a 15% inflation rate for two consecutive years

• Germany's unemployment rate drops to 4%

• France's GDP growth remains stagnant for four years

• USA has a consistent 2% inflation rate for the past 6 years

At which stage of the business cycle does the economy reach its lowest point before starting to improve?

• Peak

• Expansion

• Trough

• Contraction

Who among the following is considered as part of the labor force?

• A person who is actively looking for a job

• A person who has retired and is not seeking employment

• A child who is not old enough to work

• A person who has given up looking for a job

Susan decides to leave her corporate job to start her own bakery, a dream she's had since childhood. She will not be able to draw a salary for several months and it will take a few weeks to get the necessary licenses to start operating. How would Susan's situation be described?

• Structurally Unemployed

• Frictionally Unemployed

• Cyclically Unemployed

• Fully Employed