EPF Final Unit 2 Review

During this.... GPD increased over two quarters of the year

• peak

• Decline

• Expansion

• trough

What is a tariff?

• A tariff is a regulation on domestic production so that inflation can be controlled.

• A tariff is a subsidy for local businesses to help with production and jobs.

• A tariff is a type of trade agreement between countries that blockades outsiders.

• A tariff is a tax that is imposed by one country on the goods and services imported from another country.

What is a trough in the business cycle?

• The trough represents a stable economy with no fluctuations.
• The trough is the lowest point in the business cycle, indicating a period of economic decline before recovery begins.
• The trough is the peak of economic growth in the business cycle.
• The trough is a period of rapid expansion and growth in the economy.

What part of the business cycle might you see a contraction in three consecutive quarters, GPD fell compared to the last year and estimates say it will continue to contract in the 4th quarter?

• Boom
• Stagnation
• Recession
• Expansion

How does a high unemployment rate sustained over a long period of time affect the economy?

• It creates more job opportunities in the market.
• It leads to a decrease in the amount of currency circulating in the economy.

• It leads to increased consumer spending putting more money into the economy.

• It boosts overall economic confidence and leads the country into a boom.

What is per capita Real Gross Domestic Product?

• Per capita Real Gross Domestic Product is the average economic output per person, adjusted for inflation.
• Per capita Real Gross Domestic Product is the total economic output of a country.
• Per capita Real Gross Domestic Product is the total population divided by the GDP of a country.
• Per capita Real Gross Domestic Product measures the wealth of a nation without adjusting for inflation.

What is the best measurement that indicates economic growth of a country?

• Per capita Unemployment Rate

• Real per capita Inflation Rate

• Real per capita Gross Domestic Product (GDP)

• Fiscal Policy increasing and increasing trade Balance

During what might a business owner find that demand for their goods have declined and likely will cause a decrease in prices?

• Increased consumer income
• Government subsidies for goods
• Seasonal demand fluctuations
• Economic recession

What is a recession?

• A recession is a period of economic decline characterized by falling GDP and other economic indicators.
• A recession is when the stock market reaches an all-time high.
• A recession is a time of economic growth and rising GDP.
• A recession is a period of increased consumer spending and investment.

What is a contraction in the business cycle?

• A contraction is when unemployment rates reach an all-time low.
• A contraction is a phase where economic activity increases.
• A contraction is a phase in the business cycle where economic activity decreases.
• A contraction refers to a period of stable economic growth.