Review Economics Final Exam

Steady economic growth is measured by

• inflation rate
• unemployment rate
• Real GDP growth rate

An increase in the price level in an economy over time

• stagflation
• deflatiion
• inflation
• disinflation

A decrease in the overall price level; this is not very common in the U.S

• stagflation
• deflatiion
• inflation
• disinflation

____________ unemployment is caused by a downturn in overall economic activity; as the economy recovers, the jobs will return.

• frictional
• seasonal
• cyclical
• structural

____________ unemployment results from workers moving between jobs or waiting for jobs to start.

• frictional
• seasonal
• cyclical
• structural

____________ unemployment results from a mismatch of the labor supply and the labor market. Workers don’t have the right skills or are located in the wrong place.

• frictional
• seasonal
• cyclical
• structural

____________ unemployment is related to the irregular demand for some types of workers.

• frictional
• seasonal
• cyclical
• structural

The highest point in the business cycle

• recession or contraction
• peak
• trough
• recovery or expansion

The lowest point in the business cycle

• recession or contraction
• peak
• trough
• recovery or expansion

The period of a business cycle when real GDP is falling

• recession or contraction
• peak
• trough
• recovery or expansion