Understanding Economic Goals and Indicators

What is the primary measure used by economists to assess the performance of an economy in terms of growth?

• Consumer Price Index (CPI)

• Gross Domestic Product (GDP)

• Unemployment Rate

• Inflation Rate

If the GDP of a country decreases over a year, what does this indicate about the economy?

• The economy is growing

• The economy is contracting

• The economy is stable

• The economy is experiencing inflation

Which of the following is a goal of all economies related to employment?

• Reducing the GDP

• Increasing inflation

• Making jobs available to everyone who wants one

• Decreasing the CPI

What does a rising unemployment rate typically indicate about the economy?

• The economy is expanding

• The economy is in a recessionary period

• The economy is experiencing deflation

• The economy is achieving price stability

What is the term used to describe a situation where the average prices of products change very little or not at all?

• Inflation

• Deflation

• Price stability

• Economic contraction

Which index is used to measure inflation by determining the change in prices of a hypothetical basket of goods?

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Unemployment Rate

• Economic Indicators

What happens to the unemployment rate when the economy is expanding?

• It goes up

• It goes down

• It remains unchanged

• It becomes unpredictable

Which of the following is considered a lagging economic indicator?

• New claims for unemployment insurance

• Average length of unemployment

• Consumer Price Index (CPI)

• Gross Domestic Product (GDP)

What type of economic indicator predicts the status of the economy three to twelve months in the future?

• Lagging economic indicators

• Leading economic indicators

• Coincident economic indicators

• Historical economic indicators

If overall prices in an economy go down, what economic condition is occurring?

• Inflation

• Deflation

• Price stability

• Economic growth