Unit 4 Test Review #1: Economic Indicators & Business Cycle

Type of unemployment that is the result of a worker lacking the skills needed to do a job (oftentimes, workers are replaced by machines)

• Cyclical

• Frictional

• Structural

• Seasonal

To be considered "unemployed" you must...

• Not have a job BUT you must be ACTIVELY looking for one

• Have a job but not working full-time

• Be receiving unemployment benefits

• Be a student looking for part-time work

Real GDP and unemployment have a __________ relationship; EX: if Real GDP increases, then unemployment will decrease

• Positive

• Negative

• Neutral

• Inversely Proportional

GDP tends to fall during a...

• Expansion

• Recession

• Boom

• Recovery

Price Stability is best measured by this economic indicator...

• Consumer Price Index

• Gross Domestic Product

• Unemployment Rate

• Balance of Trade

Included or Not Included in GDP? U.S. government purchasing new submarines

• Included!

• Not Included

• Only if used for military purposes

• Only if purchased from domestic manufacturers

Real GDP is at its lowest in...

• a Peak

• a Trough

• an Expansion

• a Recession

Stages of the business cycle in order

• Expansion, Peak, Trough, Recession

• Peak, Recession, Trough, Expansion

• Recession, Expansion, Peak, Trough

• Trough, Peak, Expansion, Recession

Economic Growth is best measured by this economic indicator...

• Gross Domestic Product

• Consumer Price Index

• Unemployment Rate

• Balance of Trade

Type of unemployment related to particular seasons of the year (Ex: you may be hired as a clerk at the mall during the holiday season, but get laid off at the end of January)

• Cyclical

• Structural

• Frictional

• Seasonal