Unit 5 Quiz

What are the four phases of the business cycle?

• Expansion, Peak, Contraction, Trough

• Introduction, Growth, Maturity, Decline

• Start, Middle, End, Restart

• Boom, Bust, Recovery, Recession

Does Nominal GDP take inflation into consideration?

• Yes

• No

• Only in certain conditions

• Depends on the country

Does Real GDP take inflation into consideration?

• Yes

• No

• Only in certain conditions

• Depends on the country

Which of the following goods would not be counted towards a country’s GDP?

• A car manufactured domestically

• A loaf of bread sold in a local store

• A used car sold privately

• A new smartphone produced locally

The pie chart below gives information on the GDP of the United States in 2022. Based on the data, which of the following makes up the smallest percentage?

• Goods sold to other countries.

• Consumer spending on final goods.

• Goods bought from other countries.

• Business spending on new factories and machinery.

Which of the following best describes investment spending?

• Spending by businesses on new factories and machinery.

• Buying stocks and bonds to add to your portfolio.

• Going to college to invest in your education.

• Spending on new factories and machinery by the government.

How is unemployment rate calculated?

• (Unemployed / Population) x 100

• (Unemployed / Labor Force) x 100

• (Labor Force / Population) x 100

• (Population / Unemployed) x 100

Given the information below, what is the unemployment rate of the country?

• 66%

• 6%

• 100%

• 10%

Josephine is a recent college graduate from a prestigious university. She is currently looking for her first job and is interviewing with law firms in New York City. Josephine would be classified as which type of unemployed worker?

• A. Frictionally unemployed

• B. Structurally unemployed

• C. Cyclically unemployed

• D. Not considered unemployed

Which of the following scenarios best describes inflation?

• A. Overall prices are decreasing due to a lack of demand and unemployment.

• B. Prices of stocks are increasing due to speculation and a booming stock market.

• C. Overall prices are increasing due to an increase in the amount of money.

• D. Prices of automobiles are rising due to a shortage of computer chips.