UNIT 11 SIE EXAM PREP

All the following are lagging indicators except A) personal income. B) labor cost per unit of output. C) corporate profits. D) outstanding commercial loans.

A

An analyst is trying to determine upcoming economic activity to better determine her recommended investment strategy. She would be most interested in A) leading indicators. B) lagging indicators. C) coterminous indicators. D) coincident indicators.

A

Economic growth has slowed to a halt with little consumer demand, but prices for goods and services are still rising. This is known as economic A) stagflation. B) stagnation. C) deflation. D) contraction.

A

The consumer price index is a measure of A) the change in prices. B) the change in economic output. C) the change in bond yields. D) the change in the value of equities.

A

All the following are leading indicators except A) new orders. B) personal income. C) stock prices. D) the money supply.

B

The economy is showing that employment is low, there is little consumer demand, and loans for expansion and retooling are way down, showing a lack of business activity. Yet prices for consumer goods are still rising. Economists would call this a period of A) inflation. B) stagflation. C) deflation. D) stagnation.

B

Which of the following can encourage economic growth because gradually increasing prices tend to stimulate business investment? A) High inflation B) Mild inflation C) Stagnation D) Deflation

B

All the following are coincident indicators except A) trade sales. B) retail employment. C) changes in durable goods inventories. D) personal income.

C

Deflation occurs during A) a depression, coinciding with economic expansion in the business cycle. B) a depression, coinciding with an economic trough in the business cycle. C) a recession, coinciding with an economic contraction. D) a recession, coinciding with economic peaks.

C

Increasing cost of goods and services and high unemployment are characteristics of A) inflation. B) deflation. C) stagflation. D) stagnation.

C

The measure of the inflation rate is A) the EAFE Index. B) the S&P 500 Index. C) the Consumer Price Index. D) the business cycle.

C

When the economy shows high unemployment and is failing to expand as measured by a lack of consumer demand and business activity, but prices for goods and services are still rising, this could be described as what? A) Stagnation B) Deflation C) Stagflation D) Inflation

C

Which of the following is a lagging indicator? A) Increase in hours worked B) Decrease in industrial production C) Increase in the consumer loans to personal income ratio D) Raw materials orders

C

Which of the following is a leading indicator? A) Gross domestic product B) Wages C) New orders for consumer goods D) Corporate profits

C

A measure of a nation's citizen's economic activity is A) S&P 500 Index. B) Consumer Price Index. C) gross domestic product. D) gross national product.

D

Stagnation in the economy can be associated with A) plentiful employment opportunities. B) robust production. C) prolonged periods of healthy economic growth. D) high unemployment.

D

The U.S. gross domestic product is best described as A) all goods produced in the nation minus the value of all services produced. B) all services produced in the nation only. C) all goods and services produced domestically but sold overseas. D) all goods and services produced within the nation.

D

The measure of economic output generated from within a nation's borders is A) Consumer Price Index. B) gross national product. C) S&P 500 Index. D) gross domestic product.

D

Which of the following is a coincident indicator? A) S&P 500 Index B) Increase in the duration of unemployment C) Housing starts D) Household income

D

Economic reports show that there is a general rise in prices for consumer goods and a high unemployment rate occurring simultaneously. This combination can best be described as A) deflation. B) inflation. C) stagnation. D) stagflation.

D

Several months of slow economic growth and rising unemployment have characterized the economy. Market analysts would describe this as a period of A) inflation. B) stagflation. C) deflation. D) stagnation.

D