GDP
Real GDP is adjusted for
inflation
If Sarah is laid off due to a recession, what type of unemployment is she faced with?
Cyclical
In an economic recession,
unemployment is ........ (high or low) and
inflation is ........ (high or low)
Unemployment is high and inflation is low in an economic recession.
What is it called when the government changes spending and taxes to manage the economy?
Fiscal Policy
Where on the business cycle would you find the lowest unemployment?
At a peak
In a booming economy GDP is
High or low
High
If a construction worker up North is laid off as winter approaches, what type of unemployment is it?
Seasonal
The highest part of the business cycle is
the peak
What would the government do with taxes to speed up the economy?
Lower taxes
Who is more likely to be hurt by inflation, a retiree on a fixed income, the government, or a business owner?
The retiree because their fixed income loses purchasing power as prices rise but their income does not.
Which choice below is part of GDP?
Corporate profits, income taxes, consumer spending, or used car sales?
consumer spending
You just fired an employee because they played on their phone instead of doing their job. What type of unemployment are they facing?
Frictional
The full employment for the U.S. is
above 11%, 4-6%, under 2% or 15-20%
4-6%
What would government do with government spending if the economy is booming?
reduce government spending
the dollar market value of all goods/services produced by a country in a given amount of time
GDP
Which choice below is not part of GDP?
Consumer spending, government spending, taxes, or business investment
taxes
You and 125 of your co-workers were laid off because the company invested in a robot that can do your jobs. What type of unemployment are you facing?
structural
An economic expansion starts at a ........ and ends at a ........
An economic expansion starts at a trough and ends at a peak.
What are the two things the government can do with taxes and spending to slow down a booming economy?
Raise taxes and reduce government spending
GDP stands for
Gross Domestic Product
During an expansion, does GDP increase of decrease?
increase
During a recession, is unemployment high or low?
high
What do we call an economic period that lasts for about 3 months, starts at a peak and ends at a trough? Hint: a recession is more than 2 quarters of a year.
contraction
What are the two things the government would do to speed up a sluggish economy?
Reduce taxes and increase government spending
What type of unemployment is it when a 15 year can't find a Summer job?
This is not unemployment because 15 year olds are too young to be counted as unemployed.