What are the two main branches of economics?

• Supply and Demand

• Microeconomics and Macroeconomics

• Inflation and Deflation

• Capitalism and Socialism

What analogy is used to describe the economy?

• A running track

• A car

• A machine

• A river

What does GDP stand for?

• Gross Domestic Product

• Gross Domestic Policy

• Government Debt Percentage

• General Domestic Product

What does economic growth refer to?

• An increase in the stock market

• A decrease in unemployment

• An increase in a country's GDP over time

• A reduction in inflation rates

Which is NOT a component of GDP?

• Consumer Spending

• Investment

• Government Spending

• Private Savings

What signifies a recession in an economy?

• High consumer spending

• Low unemployment

• Rapid economic growth

• Economic slowdown and high unemployment

What is the primary goal of fiscal policy?

• To increase exports

• To manage the economy's growth and stability

• To reduce government debt

• To stabilize the currency

Which of the following is a measure of a healthy economy?

• High unemployment

• Low GDP

• High inflation

• Low unemployment

What happens during an economic expansion?

• Consumer spending decreases

• Unemployment increases

• Standard of living decreases

• GDP is on the rise

What can cause a recession?

• All of the above

• A decrease in investment by businesses

• Decreased government spending

• Increased consumer spending