Quizs: Economic Indicators Test - Ellis

Cyclical unemployment

• Jobs lost that directly relate to swings in the business cycle.

• Jobs lost due to technological advancements.

• Jobs lost because of seasonal changes in demand.

• Jobs lost due to individual performance issues.

Gross Domestic Product (GDP)

• The total income of a country's citizens in a year.

• The dollar value of a country’s final goods and services during a one-year period.

• The total value of all assets owned by a country.

• The amount of money a country spends on imports and exports.

Wage-price spiral

• An endless cycle of increased wages and increase prices.

• A temporary increase in wages without affecting prices.

• A situation where prices decrease while wages increase.

• A fixed relationship between wages and prices that does not change.

Inflation

• When the general level of prices rises.

• A decrease in the overall price level.

• A measure of economic growth.

• An increase in unemployment rates.

Stagflation

• A period of stagnant economic growth coupled with inflation.

• A time of rapid economic growth and low unemployment.

• A situation where prices are falling while the economy is growing.

• A phase of high inflation with no change in economic output.

Real GDP

• Gross domestic product adjusted for inflation.

• Total market value of all final goods and services produced in a country.

• The sum of all investments made in a country.

• The total income earned by a nation's residents.

Trough

• The peak point of the business cycle before a recession.

• The low point of the business cycle that comes right before the transition into recovery.

• A period of sustained economic growth and expansion.

• The stage of the business cycle where unemployment is at its highest.

What type of unemployment occurs when someone leaves their profession in search of a different career?

• Cyclical Unemployment

• Structural Unemployment

• Frictional Unemployment

• Seasonal Unemployment

Recession

• The upward turn that comes immediately after the TROUGH stage in the business cycle.

• The downward turn that comes immediately after the PEAK stage in the business cycle?

• A period of economic stability and growth in the business cycle.

• The phase where economic activity reaches its lowest point in the business cycle.

Why are intermediate products excluded from calculations of GDP?

• Their value is included in that of the final product.

• They are not produced within the country.

• They do not contribute to economic growth.

• They are only relevant for specific industries.