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Money Matters Business Cycle Economic Growth Flashcards | StudBud
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Money Matters Business Cycle Economic Growth
Money Matters Business Cycle Economic Growth
15 terms
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StudBud Administration
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35 plays
Covers business cycle, GDP, unemployment, inflation, trade
Flashcards
15 cards
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Questions
15
Answers
1
When the economy has reached its maximum level of growth, we are in what phase?
contraction
peak
expansion
trough
2
A consequence of inflation is reduced purchasing power and decreased standard of living
True
False
3
Our economy is in a recession when in...
The contraction phase for at least 1 quarter
The contraction phase for more than 2 quarters
The contraction phase
A trough
4
Unemployment in the US is...
the percentage of adults who are not working
the percentage of non-working adults that only want full time employment
the percentage of the labor force that is unemployed
5
GDP measured per person is ...
used to measure well being of citizens
is GDP
is GDP per capita
used to measure standard of living
6
Nations that choose to specialize in producing a specific good or service have what type of advantage?
absolute advantage
comparative advantage
trade advantage
voluntary exchange advantage
7
The value of a currency expressed in terms of the amount of good or services that one unit of money can buy is....
Market Basket
Inflation
Consumer Price Index (CPI)
Purchasing power
8
This phase of the business cycle shows economic growth
Peak
Expansion
Contraction
Trough
9
The labor force is the total number of people who are employed and unemployed (available for work)
True
False
10
Some problems with our unemployment measure is...
Does not reflect wage rates
discouraged workers and part-time workers are not included
does not reflect movements from full time to part time work
11
Why are countries concerned about economic growth?
A better standard of living for citizens.
Reduced standard of living per person with economic growth.
Growing countries produce more goods and services for citizens.
12
Inflation is...
Measured by the Consumer Price Index (CPI)
Reduces purchasing power
Overall increase of prices over time
Is a good thing for the economy
13
The total market value of all final goods and services adjusted for inflation is
Gross Domestic Product
real GDP
nominal GDP
GDP
14
The business cycle...
Is not a good indicator or inflation
shows the rise and fall of production output of goods and services
Is a lagging indicator
Is measured by GDP (gross domestic product)
15
What are some factors that contribute to economic growth?
Political stability, economic freedom, and a slow rate of population growth
technological innovation, high investment in human capital
high rate of population to replace labor force
Strong incentives to save and invest, free trade
