Test 1. APPLIED ECONOMICS

When more people are employed, businesses gain more customers.

• Employment

• Income

• Inflation

• Exchange Rate

When family earnings increase, consumer spending rises.

• Employment

• Income

• Inflation

• Exchange Rate

A rise in general prices of goods and services.

• Employment

• Income

• Inflation

• Exchange Rate

Borrowing becomes expensive for companies when this is high.

• Exchange Rate

• Recession

• Interest Rate

• Employment

When the peso strengthens, importers benefit.

• Exchange Rate

• Recession

• Interest Rate

• Employment

A long period of negative economic growth.

• Employment

• Exchange Rate

• Recession

• Interest Rate

When unemployment rises, demand for goods falls.

• Employment

• Exchange Rate

• Recession

• Interest Rate

Businesses may delay expansion if this rate is high.

• Employment

• Exchange Rate

• Recession

• Interest Rate

Families receiving OFW remittances are directly affected by this factor.

• Employment

• Exchange Rate

• Recession

• Interest Rate

Reduced spending during economic decline forces firms to close.

• Exchange Rate

• Recession

• Interest Rate

• Inflation