Chapter 11 - The Nature and Causes of Economic Fluctuations

As a result of the COVID-19 crisis GDP in the second quarter of 2020 was:

• -19%
• -9.5%
• -3.5%
• -0.5%
• 0%

From December 2019 to April 2020 unemployment increased by approximately what percentage?

• 15%
• 11%
• 9%
• 6%
• 4%

In 2019, before the COVID-19 pandemic hit the United States, what issue produced the most economic concern?

• inflation
• unemployment
• trade disputes
• currency devaluations
• deflation

Which of the following statements is false?

• Economic fluctuations include recessions and rapid expansions.
• Economic fluctuations seem to have diminished in severity.
• Economic fluctuations are an important subject in the study of economics.
• Economic fluctuations did not occur until the twentieth century.
• Economic fluctuations are departures from the long-run growth trend.

The 2008–09 recession was

• longer lasting and much more severe than the 2001 recession.
• shorter than the 2001 recession, but much more severe.
• longer lasting than the 2001 recession, but less severe.
• the first recession of the 21st century in the United States.
• shorter and less severe than the 2001 recession.

The text defines economic fluctuations as

• the rise and fall of real GDP.
• periods of time when there is excessive GDP volatility.
• periods of time when the economy is in either a recession or a boom.
• departure of the economy from its long-term growth trend.
• the rise and fall of unemployment.

Between 2001 and 2007

• the United States economy was in recession.
• the United States economy moved upward and millions of jobs were created.
• the United States economy grew, but not many jobs were created.
• the United States economy moved downward, but still many jobs were created.
• the United States economy remained stationary.

Between December 2007 and June 2009,

• the United States economy was in recession and millions of jobs were lost.
• the United States economy moved upward and millions of jobs were created.
• the United States economy grew, but not many jobs were created.
• the United States economy moved downward, but still many jobs were created.
• the United States economy remained stationary.

Over the period from 1982 to 2007, economic fluctuations

• have become more severe than in the past.
• have occurred more often than in the past.
• have not changed in severity when compared to past economic fluctuations.
• have become less severe than in the past.
• have occurred just as often as in the past.

The study of economic fluctuations is

• more important than the study of long-run economic growth.
• not necessary to understanding economics.
• as important as the study of long-run economic growth.
• less important than the study of long-run economic growth.
• overrated, because economic fluctuations don't affect many people.