Podcast
Questions and Answers
Which of the following statements is true about consumer confidence?
Which of the following statements is true about consumer confidence?
- Consumer confidence reflects expectations of future incomes and employment prospects. (correct)
- Consumer confidence has no impact on spending decisions.
- Consumer confidence is directly observed through consumer spending.
- Consumer confidence can only be measured through surveys.
What are the two primary measures of household consumption?
What are the two primary measures of household consumption?
- Retail sales and durable goods purchases.
- Retail sales and broad-based indicators of consumer spending. (correct)
- Retail sales and consumer sentiment.
- Consumer sentiment and durable goods purchases.
Which category of consumer spending is the most cyclical?
Which category of consumer spending is the most cyclical?
- Investment spending
- Services
- Non-durable goods
- Durable goods (correct)
What does a rise in the saving rate usually indicate?
What does a rise in the saving rate usually indicate?
Which factors influence short-term changes in the economy?
Which factors influence short-term changes in the economy?
What are business cycles?
What are business cycles?
Which sector of the economy has the largest impact on overall economic direction?
Which sector of the economy has the largest impact on overall economic direction?
What do analysts and investors need to understand in order to assess the performance of sectors and companies during business cycles?
What do analysts and investors need to understand in order to assess the performance of sectors and companies during business cycles?
Which factor makes the housing sector especially sensitive to changes in interest rates?
Which factor makes the housing sector especially sensitive to changes in interest rates?
During expansionary cycles, what happens to housing prices and mortgage rates?
During expansionary cycles, what happens to housing prices and mortgage rates?
What can happen if housing prices have risen rapidly in the recent past?
What can happen if housing prices have risen rapidly in the recent past?
What role do demographics play in cyclical behavior in housing?
What role do demographics play in cyclical behavior in housing?
Which of the following terms refers to people who have been out of work for a long time but are still actively looking for a job?
Which of the following terms refers to people who have been out of work for a long time but are still actively looking for a job?
What does the participation rate measure?
What does the participation rate measure?
Which of the following terms refers to a person who has a job but either has the qualifications to work at a significantly higher-paying job or works part-time but desires a full-time position?
Which of the following terms refers to a person who has a job but either has the qualifications to work at a significantly higher-paying job or works part-time but desires a full-time position?
What does the unemployment rate measure?
What does the unemployment rate measure?
Which of the following statements is true about the impact of strong external cycles on exports?
Which of the following statements is true about the impact of strong external cycles on exports?
What effect does currency appreciation have on trade?
What effect does currency appreciation have on trade?
What is the impact of cumulative currency movements on trade flows?
What is the impact of cumulative currency movements on trade flows?
What is the relationship between unemployment and inflation in an overheated economy?
What is the relationship between unemployment and inflation in an overheated economy?
Which of the following is a reason why the unemployment rate is considered a lagging economic indicator of the business cycle?
Which of the following is a reason why the unemployment rate is considered a lagging economic indicator of the business cycle?
Which of the following is a bias introduced by measuring the labor force in terms of the working-age population?
Which of the following is a bias introduced by measuring the labor force in terms of the working-age population?
Why do measures of unemployment rise more slowly as the economy slides into recession?
Why do measures of unemployment rise more slowly as the economy slides into recession?
Which of the following is a measure that can assist in understanding the employment situation and its use in determining cyclical directions?
Which of the following is a measure that can assist in understanding the employment situation and its use in determining cyclical directions?
Which of the following is a factor that can contribute to an increase in productivity?
Which of the following is a factor that can contribute to an increase in productivity?
What does the inflation rate refer to?
What does the inflation rate refer to?
How does the inflation rate typically relate to the business cycle?
How does the inflation rate typically relate to the business cycle?
Why do investors closely follow the inflation rate?
Why do investors closely follow the inflation rate?
What can an unexpected change in the inflation rate result in?
What can an unexpected change in the inflation rate result in?
What are some challenges in measuring the onset of technological change?
What are some challenges in measuring the onset of technological change?
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