Economic Indicators Quiz

What type of unemployment is caused by workers voluntarily changing jobs and by temporary layoffs?

Which measure of employment and labor utilization looks at how well the labor force is being used in terms of skills, experience, and availability to work?

What is the normal rate of unemployment around which the unemployment rate fluctuates?

Which type of unemployment occurs as a result of harvest schedules or vacations, or when industries slow or shut down for a season?

What does the Bureau of Labor Statistics measure in the U.S. economy to support public and private decision making?

Which type of economic statistical indicator changes (more or less) simultaneously with general economic conditions and therefore reflects the current status of the economy?

What is the definition of creeping inflation?

What is the definition of deflation?

What is the peak of the economy called before a recession begins?

What does easy money policy refer to?

What does contractionary fiscal policy involve?

What is supply-side fiscal policy also known as?

What does demand side fiscal policy focus on?

What is meant by GDP per capita?

What is meant by tight money policy?

What does Milton Friedman's monetary policy propose?

Leading economic indicators are measures that consistently rise or fall several months after an expansion or a contraction begins.

Cyclical unemployment is caused by a business cycle recession.

Underemployment measures the utilization of labor force in terms of skills, experience, and availability to work.

Coincident Economic Indicators change (more or less) simultaneously with general economic conditions and therefore reflect the future status of the economy.

Frictional unemployment is a type of unemployment caused by workers involuntarily changing jobs and by permanent layoffs.

Natural rate of unemployment is the normal rate of unemployment around which the unemployment rate fluctuates due to seasonal unemployment.

Creeping inflation refers to a sudden, dramatic rise in the price of goods and services over a short period of time.

Deflation is a general decline in prices for goods and services, typically associated with an expansion in the supply of money and credit in the economy.

GDP per capita is calculated by dividing the gross domestic product by the total population of a country.

Peak refers to the lowest point of the economy before a recovery begins, while trough is the highest point of the economy before a recession begins.

Milton Friedman's monetary policy proposes that the Fed should target the growth rate of money to equal the growth rate of real GDP, leaving the price level unchanged.

In an easy money policy, interest rates are lower, making it easier to borrow and increasing money circulation in the economy.

The discount rate refers to the interest rates banks pay to consumers for borrowing money.

Keynes and his followers believed that individuals should save more and spend less to effect full employment and economic growth.

Supply-side fiscal policy, also known as trickle-down economics, focuses on increasing aggregate demand to influence unemployment.

The multiplier effect refers to the effect on national income and product of an exogenous decrease in demand.