Econ Final Review

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

When the economy experiences an expansion, it is most likely the case that

• GDP is increasing, unemployment is increasing, and inflation is decreasing

• GDP is decreasing, unemployment is decreasing, and inflation is increasing.

• GDP is increasing, unemployment is decreasing, and inflation is increasing

• GDP is decreasing, unemployment is decreasing, and inflation is decreasing.

What term is used to describe an increase in the general price level?

• Deflation

• Monetary policy

• Stagnation

• Inflation

Which of the following is associated with peaks in the business cycle?

• Relatively high levels of unemployment

• Relatively low levels of unemployment

• Recessions

• Both High Unemployment and Recession

"Dunder Mifflin Corporation Fires 5,000 Employees" This headline affects which economic indicator the most?

• Consumer Price Index

• Consumer Spending

• Unemployment rates

• Inflation

If a news headline says, "6 straight years of growth! How much longer can the economy keep up?"

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

The Business Cycle charts...

• the ups and downs of an economy

• series of stages in the economy as it expands and contracts.

• the periodic growth and decline of a nation’s economy, measured mainly by its GDP (Gross Domestic Product).

• All of the above

What is a credit score?

• a three-digit score that tells lenders how much money you make each year.

• A five-digit numerical rating that reflects how likely you are to repay your debt.

• A three-digit numerical rating that reflects how likely you are to repay your debt.

• A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts

Which budget item will most likely take up the largest percentage of your income at 25-30%?

• transportation

• housing

• groceries

• saving/investing