Economic Analysis Mastery Quiz

Given a graph showing the GDP growth rate over a decade, which of the following could indicate a recession?

• A consistent upward trend

• Two consecutive quarters of decline

• A sudden spike in growth

• A plateau in growth rates

When analyzing a supply and demand graph, an increase in demand without a change in supply will most likely result in:

• A decrease in price

• An increase in price

• No change in price

• A decrease in quantity supplied

On a CPI (Consumer Price Index) graph, if the index moves from 240 to 252 over a year, what is the inflation rate for that year?

• 4%

• 5%

• 6%

• 10%

If the unemployment rate decreases, which of the following is most likely to happen to consumer spending?

• Increase

• Decrease

• Stay the same

• First decrease, then increase

Given a graph of the stock market index over time, a downward trend line indicates:

• Bull market

• Bear market

• Stagnation

• Recovery

In a graph showing interest rates and investment levels, an inverse relationship means:

• As interest rates increase, investments decrease

• As interest rates decrease, investments decrease

• As interest rates increase, investments increase

• There is no relationship between interest rates and investments

When a graph shows a country's exports and imports, and the exports line is above the imports line, the country has:

• A trade deficit

• A trade surplus

• Balanced trade

• An economic recession

If a Lorenz curve for income distribution becomes closer to the line of equality, it indicates:

• Increasing income inequality

• Decreasing income inequality

• No change in income inequality

• The onset of a recession

Using a graph of the money supply over time, a sharp increase in the money supply is likely to lead to:

• Deflation

• Inflation

• Stagnation

• Economic growth

On a graph plotting government spending against time, a steep slope upwards indicates:

• Austerity measures

• Expansionary fiscal policy

• Contractionary fiscal policy

• Balanced budget