Macro Test Review

What typically happens to unemployment during a recession?

• it no longer exists

• it usually goes down

• it usually goes up

• nothing

When a business cycle is in contraction for two quarters, there is a(n)

• aggregate demand

• recovery

• aggregate supply

• recession

What is the sustained increase in the price level of the economy over time called?

• inflation

• deflation

• ceteris paribus

• GDP

What are the four criteria to be counted as unemployed?

• 16+ years old, incarcerated, have a job, not looking for a job

• 16+ years old, not incarcerated, no job, looking for a job

• 15+ years old, not incarcerated, no paid jobs, seeking employment

• 14+ jobs, incarcerated, no paid jobs, seeking employment

Which institution is responsible for the control of the money supply in the United States?

• Judicial Branch

• Legislative Branch

• Federal Reserve

• U.S. Treasury

Why do economists study changes in the Gross Domestic Product (GDP)?

• to determine how CPI is measured

• To determine the rate of disposable income

• to determine inflation rates

• to measure productivity

What do economists determine by measuring changes in the Consumer Price Index?

• inflation rates

• poverty rates

• stock prices

• business productivity

What are the four factors used in calculating GDP?

• character, installment, government spending, new exports

• capacity, investment, growth, exports

• Consumer spending, investments, government spending, net exports

• collateral damage, interest, government waste, national debt

When Home Depot lays off workers, because of declining sales due to a recession, this is an example of which type of unemployment?

• Cyclical

• Frictional

• Seasonal

• Structural

When workers at Publix are laid off because the company acquired new automated cart return systems that replaced the job skills of 'parking lot attendants'. This is an example of which type of unemployment?

• cyclical

• frictional

• seasonal

• structural