CYU: GDP, Business Cycle, Type Unemployment

Real GDP

• distorts the price level in the GDP

• expresses GDP in constant prices

• measures only intermediate goods

• is another term for GNP

Which is the following is included in GDP?

• an intermediate good

• a service produced and used in another country

• a fish that you catch and eat yourself

• a fish that you buy at a store

When a farm worker loses his job after the harvest, it is an example of

• Frictional unemployment

• Seasonal unemployment

• structural unemployment

• cyclical unemployment

Which statement describes full employment?

• Everybody who wants a job has a job

• There is no unemployment at all

• There is no cyclical unemployment

• There is no structural unemployment

A general increase in prices is called

• inflation

• purchasing power

• the CPI

• a price index

The inflation rate is

• the ability to buy goods or services

• measured in fixed dollars

• not an important measure to economists

• the percentage change in prices over time

Inflation reduced people's purchasing power because

• the same amount of money buys ore goods and services

• the same amount of money buys fewer goods and services

• the market basket has to be changed every year

• there is not enough money in the economy

GDP that is adjusted for inflation

• real GDP
• nominal GDP
• price level
• net national product

a woman who lost her job due to a decrease in sales during a recession in the economy is...

• frictionally unemployed

• structurally unemployed

• technologically unemployed

• cyclically unemployed

• seasonally unemployed

Which of the following best defines unemployment?

• The state of being able to work and actively seeking work, but unable to find employment

• The state of being able to work, but choosing not to

• The percentage of the labour force that is able and actively seeking work, but cannot find employment

• The total number of people who do not work