Understanding Economic Indicators Flashcard

Front

What is the definition of an Economic Indicator?

Back

A statistic used to gauge the health of an economy.

Front

What does GDP stand for?

Back

Gross Domestic Product

Front

Which of the following is NOT a phase of the Business Cycle? Peak, Contraction, Inflation, Recovery

Back

Inflation

Front

What is the acceptable rate of unemployment?

Back

3-5%

Front

Which of the following is a natural cause of unemployment? Cyclical, Seasonal, Frictional, All of the above

Back

All of the above

Front

What is the definition of Minimum Wage?

Back

The lowest amount an employer can legally pay an employee.

Front

Which of the following is a pro of Minimum Wage? It increases unemployment., It reduces poverty., It decreases inflation., It lowers productivity.

Back

It reduces poverty.

Front

Which of the following is a con of Minimum Wage? It increases consumer spending., It can lead to job losses and inflation., It improves living standards., It reduces income inequality.

Back

It can lead to job losses and inflation.

Front

What is the definition of Inflation?

Back

An increase in the general price level of goods and services.

Front

What is the acceptable rate of inflation? Options: 0-1%, 2-3%, 4-5%, 6-7%

Back

2-3%