Unit 3 Review (GDP, Unemployment, CPI, and Inflation)

Front

The market value of all final goods and services produced within a country in a given time period is the __________

Back

gross domestic product

Front

The difference between real and nominal GDP is that real GDP is adjusted for

Back

inflation

Front

Which type of unemployment did Keith experience after losing his job at his company’s telephone switchboard when the company installed an automated phone system?

Back

structural

Front

Why is the unemployment rate above zero when the economy reaches full employment?

Back

There are always some people in transition between jobs.

Front

The official unemployment rate may be overstated because it ignores workers in the illegal or informal economy who do not report their jobs.

Back

workers in the illegal or informal economy who do not report their jobs.

Front

Which condition is considered normal in the United States? Options: deflation, stagflation, hyperinflation, creeping inflation

Back

creeping inflation

Front

One cause of inflation is

Back

a rise in the cost of production.

Front

Business investment is most likely to increase during which phase of the business cycle?

Back

expansion

Front

A decline in economic activity over a period of at least six months is called a

Back

recession.

Front

Why is consumer confidence important to the business cycle?

Back

Confident consumers purchase more, increasing business profits and employment.