Economic RVW 3

Sales reports from Chile indicate that your company's sales there have, after months of falling, started getting stronger. You check on economic indicators there and find out that unemployment has been falling, so you suspect that: Chile may be pulling out of a recession and is beginning an expansion

• Chile may be pulling out of a recession and is beginning an expansion

• Chile continues to struggle economically

• Chile's economic data is unreliable

• Chile's economy is facing a new downturn

Your boss at the fireworks factory asks you to examine your historical sales data. Since people are more likely to buy fireworks near the Fourth of July and New Year's Eve, you realize ______ would give you the most relevant information.

Use the information in the graph to answer the question. In which year was the unemployment rate probably the lowest?

• 2000

• 2004

• 2008

• 2012

Part of your work in the economic forecasting department at Hilton Hotels & Resorts is to try to determine when the current recession will end. You report to your boss that you might have good news, that is, an expansion might be about to start, because: gross domestic income and nonfarm payroll are rising, while moving averages of initial unemployment claims have been falling.

An economy's potential output level is: the output that is possible when all resources are fully employed.

Typically, business cycles: have short and sharp recessions, followed by long and gradual expansions.

Which will probably rise when the economy is in a recession? initial unemployment claims

Refer to the following table. What was the approximate output gap in 1983?

• 1%

• 2%

• 3%

• 4%

The point in the business cycle when real GDP stops rising and begins falling is a(n):

• peak

• trough

• recovery

• expansion

When a rise in stock prices causes the value of people's stock portfolios to rise, consumption rises, reflected in a ________ the aggregate demand curve.