Vocab
person or institutions that owe money
Debtors
What does a trough indicate?
A) The GDP has stopped increasing and has begun to decline.
B) The GDP is stagnant.
C) There is a GDP gap.
D) The GDP has stopped declining and has begun to increase.
D
unemployment caused by workers changing jobs or waiting to go to new ones
Frictional Unemployment
When the general level of prices rises, the economy is experiencing inflation.
True or False
True
The business cycle begins when the economy reaches a low and begins to climb out of a recession.
True or False
False
____________ is a practice in which outside firms are hired to perform non-core operations to lower operating costs.
Outsourcing
A _________ is the point in time when real GDP stops expanding and begins to decline.
Peak
unemployment that directly related to swings in the business cycle
Cyclical Unemployment
sustained decrease in the general level of prices of goods and services
Deflation
A ____________ __________ is a statistical series used to measure changes in the price level over time.
Price Index
A _______________ ______________ is a mathematical model that uses algebraic equations to describe how the economy behaves.
Econometric Model
Which of the following is not used to predict business cycles?
A) Leading Economic Indicators
B) Dow Jones Industrial Average (DJIA)
C) Leading Economic Index
D) Consumer Price Index (CPI)
D
Technological unemployment is related to what other type of unemployment?
Structural Unemployment
_____________ is the combination of inflation and unmoving economic growth.
Stagflation
The Great Depression is also know as?
Black Tuesday
______________ ____________ was the unofficial currency issued by towns, chambers of commerce, and other civic bodies during the 1930s.
Depression Scrip
A recession is a decline in real GDP lasting at least _________ quarters or more.
2
What type of unemployment occurred when the government closed military bases in the 1990s?
Structural Unemployment
Which of the following is true about inflation?
A) Inflation usually hurts debtors more than creditors because their interest payments rise.
B) Economist have agreed on a single explanation for the cause of inflation.
C) Inflation tempts some people to take advantage of rising prices.
D) Inflation is a decrease in the general level of the prices of goods and services.
C
If periods of recession and expansion did not occur, the economy would follow a __________________ line.
Trend Line
The ________ ________ is the opportunity cost of unemployed resources.
GDP Gap
What condition stops the economy from growing and turn an expansion into a contraction?
External Shocks
How many school days until Christmas Break (include today in the total)?
Not including weekends or Thanksgiving Break.
27 Days