Economic Policy Quiz

The total dollar value of all goods and services produced in a country in one year is..

• Inflation

• GDP

• Unemployment

• GDP per capita

The general rise in price level over time is..

• Inflation

• GDP

• Recession

• Unemployment

The percentage of the population who is out of work and actively looking for a job is the __________________ rate

• GDP per capita

• GDP

• Unemployment

• Inflation

When does a contraction become a recession

• 1 month

• 6 months

• 1 year

• 2 years

What is a trough?

• The highest point an economy can reach

• The lowest point an economy can reach

• The period before the economy improves

• Unemployment rate is low

What is the peak?

• When the economy reaches highest point

• When the economy stops

• When the economy slows down

What happens to unemployment during a contraction

• Unemployment decreases

• Unemployment increases

• Unemployment stays the same

• Does not matter

What are benefits of an expansion period?

• Businesses are unsucessful

• Less jobs

• More jobs & businesses are successful

When is unemployment at its highest?

• During a contraction

• During a peak

• During a trough

• During an expansion

Which person is an example of someone unemployed?

• A retired man

• A student

• Someone who quit their job because they are unhappy