2. Assess the effects of the business cycle on different sectors of the economy. 3. Explain what the unemployment rate means and how it is calculated. 4. Identify the various types of unemployment and their costs on the economy. 5. Discuss the importance of the consumer price index as a measure of inflation. Identify who benefits and who is hurt from inflation. Key Concept Quiz business cycle a. occurs when real GDP decreases for at least six months recession _____ b. a deep and prolonged recession trough _____ c. number of people unemployed divided by the labor depression force leading economic _____ d. unemployment that arises from normal labor indicators turnover unemployment rate e. fluctuating unemployment that coincides with the discouraged worker business cycle frictional unemployment f. unemployment caused by skills that do not meet employers needs structural unemployment _____ g. unemployment rate at which no cyclical cyclical unemployment unemployment exists natural rate of _____ h. the low point of real GDP just before it begins to unemployment turn up full employment _____ i. the recurrent ups and downs in the level of inflation economic activity real income _____ j. used to forecast economic fluctuations capital gain _____ k. an individual who has stopped looking for work demand-pull inflation _____ l. is less than 100% employment of the labor force ______m. measures real purchasing power ______n. inflation originating from upward pressure on the buyers’ side of the market ______o. the profit you earn when you sell an ______p. a sustained rise in the general price level Multiple Choice Questions The four phases of the business cycle are peak, recession, trough, and recovery peak, recession, trough, and boom
2. Assess the effects of the business cycle on different sectors of the economy. 3. Explain what the unemployment rate means and how it is calculated. 4. Identify the various types of unemployment and their costs on the economy. 5. Discuss the importance of the consumer price index as a measure of inflation. Identify who benefits and who is hurt from inflation. Key Concept Quiz business cycle recession trough depression leading economic indicators unemployment rate discouraged worker frictional unemployment structural unemployment cyclical unemployment natural rate of unemployment full employment inflation real income capital gain demand-pull inflation a. occurs when real GDP decreases for at least six months _____ b. a deep and prolonged recession _____ c. number of people unemployed divided by the labor force _____ d. unemployment that arises from normal labor turnover e. fluctuating unemployment that coincides with the business cycle f. unemployment caused by skills that do not meet employers needs _____ g. unemployment rate at which no cyclical unemployment exists _____ h. the low point of real GDP just before it begins to turn up _____ i. the recurrent ups and downs in the level of economic activity _____ j. used to forecast economic fluctuations _____ k. an individual who has stopped looking for work _____ l. is less than 100% employment of the labor force ______m. measures real purchasing power ______n. inflation originating from upward pressure on the buyers’ side of the market ______o. the profit you earn when you sell an ______p. a sustained rise in the general price level Multiple Choice Questions The four phases of the business cycle are peak, recession, trough, and recovery peak, recession, trough, and boom
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