Unit 4 Test

What are the three economic goals every society seeks to accomplish?

• 6% inflation, 10% unemployment, slow economic growth

• Promote economic growth, full unemployment, limit inflation

• full employment, stable prices, economic growth

• Everyone employed, control inflation, flat economic growth

What is the correct equation for GDP below?

• GDP = L + I + O + N

• GDP = C + M + I + G

• GDP = C + I + G + (X-M)

• GDP = Nx + Mx + C + M

All of the following add to a nation's GDP EXCEPT

• Government payouts for goods and services

• Services rendered for payment

• Items purchased at a grocery store

• Items imported from another Nation

What are the four parts of the business cycle?

• Expansion - Retraction - Infraction - Sublaction

• Expansion - Peak - Recession - Trough

• Infraction - Trough - Recession - Peak

• Expansion - Peak - Sloth - Plummet

The period of the business cycle characterized by Businesses decreasing production, unemployment rising, consumer spending decreasing, and a fall in inflation is

• Trough

• Recession

• Peak

• Expansion

The point in the business cycle characterized by low unemployment and high inflation is...

• Contraction

• Trough

• Peak

• Expansion

In order to count towards the unemployment rate, you must...

• Be actively searching for a job

• All options are true

• Be able to work

• Be of a working age

When you are out of work because you have been replaced by a robot... that is...

• Structural (Technological Unemployment)

• Structuinal Unemployment

• Frictional Unemployment

• Institutional Unemployment

If you divide the amount of unemployed workers by the total labor force and multiply by 100... this will give you

• The Unemployment rate

• The rate of inflation

• The current CPI

• The business cycle

A private business purchasing machinery for its production is WHAT FACTOR OF GDP

• Investment

• Consumer spending

• Government Spending

• Exports