Econ Indicators Quiz

What is the unemployment rate typically used to measure?

• The percentage of the total labor force that is employed

• The percentage of the total labor force that is unemployed and actively seeking employment

• The percentage of the total population that is employed

• The percentage of the total population that is unemployed

Which phase of the business cycle is characterized by rising economic activity and employment levels?

• Expansion

• Peak

• Recession

• Trough

What is a leading economic indicator?

• A statistic that predicts future economic activity

• A statistic that confirms patterns in past economic data

• A measure of current economic performance

• A measure used to evaluate agricultural output

Which of the following is NOT a leading economic indicator?

• Stock market returns

• Consumer confidence index

• Gross Domestic Product (GDP)

• Building permits

During which phase of the business cycle does unemployment typically begin to decrease?

• Peak

• Recession

• Expansion

• Trough

What does a high unemployment rate indicate about an economy?

• Strong economic growth

• Economic stability

• Potential economic hardship

• High levels of investment

Which phase follows the peak in a business cycle?

• Expansion

• Recession

• Recovery

• Trough

What typically happens to consumer confidence during a recession?

• It increases significantly

• It does not change

• It decreases

• It fluctuates unpredictably

Which of the following is considered a leading indicator of economic health?

• Unemployment rate

• Consumer price index

• New orders for consumer goods

• Interest rates

What is typically observed in the stock market during the expansion phase of the business cycle?

• Rapid decline in stock prices

• Stability in stock prices

• Gradual increase in stock prices

• Unpredictable fluctuations