Economic Concepts Quiz

What economic goal do we use Real GDP to measure?

• Inflation

• Economic Growth

• Unemployment Rate

• Interest Rates

What economic goal do we use CPI to measure?

• Economic Growth

• Unemployment Rate

• Price Level

• National Income

Define Cyclical Unemployment.

• Unemployment due to workers transitioning between jobs

• Unemployment caused by changes in the economic cycle

• Unemployment due to technological changes

• Unemployment related to seasonal factors

Define Structural Unemployment.

• Unemployment caused by seasonal factors

• Unemployment due to workers transitioning between jobs

• Unemployment caused by technological changes

• Unemployment due to economic downturns

Define Frictional Unemployment.

• Unemployment caused by seasonal factors

• Unemployment related to economic downturns

• Unemployment due to workers transitioning between jobs

• Unemployment caused by technological changes

What are the four parts of the business cycle, listed in order?

• Expansion, Peak, Contraction, Trough

• Trough, Expansion, Peak, Contraction

• Contraction, Trough, Expansion, Peak

• Peak, Expansion, Contraction, Trough

What are the goals of the Federal Reserve?

• To control inflation and maximize employment

• To regulate taxes and government spending

• To manage international trade

• To promote exports

What tool does the FED use to accomplish its goals?

• Fiscal Policy

• Taxation

• Monetary Policy

• Budgeting

Who manages fiscal policy?

• The Federal Reserve

• The President and Congress

• Private Banks

• International Monetary Fund

Who manages monetary policy?

• The President and Congress

• The Federal Reserve

• The Treasury Department

• The World Bank