Chapter 13 Review Quizizz

When GDP reaches its highest point and stops rising = __________

When GDP hits its lowest point and stops falling = ___________

• peak

  trough

• trough

  peak

Scenario 1 = During hurricane season, stores have trouble maintaining their inventory of storm supplies, so they increase prices to avoid shortages

Scenario 2 = The war in Ukraine leads to rising costs of oil and gasoline, so businesses are forced to increase the prices of most consumer goods.

Scenario 3 = The government passes a massive spending bill to send billions of dollars to Israel

• demand-pull inflation

  cost-push inflation

  quantity theory

• cost-push inflation

  demand-pull inflation

  quantity theory

• quantity theory

  demand-pull inflation

  cost-push inflation

• demand-pull inflation

  quantity theory

  cost-push inflaiton

Reorder the steps in constructing a consumer price index (CPI)

• Select a sample of goods and services purchased by the typical urban consumer

• Find the average prices of all goods and services in the market basket

• Divide the cost of the current year market basket by the base year market basket

• Select a base year

If the CPI increases from 80 to 84% between year 1 and year 2, what is the inflation rate?

Inflation Rate = (current CPI - base CPI) / (base CPI) * 100

• 2%

• 3%

• 5%

• 7%

Identify whether these individuals would be hurt or helped/unaffected by unanticipated inflation

Groups:

(a) Hurt

,

(b) Unaffected or helped

• An individual whose labor contract includes a COLA

• A creditor (bank) who loans someone money on a fixed interest rate

• An individual who opens a savings account with a fixed interest rate

• An individual who buys a bond with a low rate of interest

• Those living on minium wage or a fixed income

• A person who borrows money with a fixed interest rate on the loan

• The rich

• An apartment building owner who owns a building in a city with a price ceiling

Match the following formulas

• unemployment rate

• market basket current year/market basket base year

• inflation rate

• #unemployed/(# unemployed + #employed)

• CPI

• #unemployed + #employed

• labor force

• (current CPI - base CPI)/base CPI

• market basket

• price X quantity of all goods/services

Which type of unemployment is not concerning, and will always exist even under full employment?

• frictional

• cyclical

• structural

• seasonal

Match the following

• seasonal

• The Biden administrations pushes for renewable energy, and many Pennsylvania coal miners lose their jobs

• structural

• James is a snow plower in Alaska who has trouble finding work during the summer

• frictional

• Jimmy graduates from college with a business degree and is actively searching for his first job

• underemployed

• Jimothy graduated from Harvard with a Law degree and works at Circle K

• cyclical

• Jim is laid off from his job at the water park during the Covid pandemic

Which of these individuals is considered UNEMPLOYED?

• Steve gets into a car accident and must go on short term disability from his job

• Stephen graduated from college and searches for a job for 3 months, but is frustrated and moves back home with his parents

• Stephanie lost her job at Walmart and has been actively looking for a new job for 3 weeks

• Stevie is an unpaid worker for his mother's cleaning business, and works 25 hours every week

Assume the following population data for country X:

Adult population = 150

Number of employed = 90

Number of unemployed = 10

Not in the labor force = 50

What is the unemployment rate?

• 50%

• 5%

• 10%

• 20%