Measuring the Economy, Labor, & Globalization Review

To measure the health of an economy, people look at the symptoms or indicators used to measure the health of an economy. The 3 main indicators include all of the following except;

• Gross Domestic Product

• Imflation/ Consumer Price Index

• Unemployment

• Average Income Level

Gross Domestic Product includes the market value of all FINAL goods and services produced within a country during a given period of time.

• True

• False

According to this image, the United States exported 200 billion in goods and services, and imported 150 billion. This category is what part of GDP?

• Household Consumption/ C

• Business Investment/ I

• Government Purchases/ G

• Net Exports/ NX

The Business Cycle measures ___ over time.

• wealth

• inflation

• economic growth

The business cycle is made up of how many phases?

• 5

• 4

• 3

• 2

GDP declines during a(an)

• peak

• contraction

• expansion

The business cycle rises above the trendline during-

• rescessions

• expansions

• troughs

Economic recovery begins-

• above the trend line

• at the end of a recession (trough)

• at the "boom" period

What follows the "peak" of a business cycle?

• recession

• a "bust"

• the trough

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