Economic Indicators Test Review

A trend line will show-

• an increase in Real GDP over time.

• only economic recessions.

• only economic expansions.

Which of the following is a recession, or contraction?

• A

• B

• C

• D

Which of the following is a peak?

• A

• B

• C

• D

Which of the following is a trough?

• A

• B

• C

• D

Which of the following is an expansion, or recovery?

• A

• B

• C

• D

Which option presents the business cycle in the correct order

• trough, contraction, peak, recovery

• trough, expansion, peak, contraction

• peak, expansion, trough, recovery

• peak, contraction, recovery, trough

If GDP falls for at least 2 Quarters, it is considered what stage of the business cycle?

• Expansion

• Recession

• Prosperity

• Recovery

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• Leading economic indicator

• Full employment

• Unemployment rate

• workforce

The period between the peak and the trough is the _____; the period between the trough and the peak is the _____.

• recession; expansion
• expansion; recession
• peak; trough
• trough; peak

When Inflation occurs,

• Price decreases in the economy
• The purchasing power of money decreases in the economy
• The dollar appreciates on foreign exchange markets
• Basic necessities become cheaper