practice quiz 17 macro
Which of the following will probably rise when the economy is in a recession?
Initial unemployment claims
Which of the following correctly describes the business cycle?
It is the fluctuations of GDP around the potential output.
An example of a leading indicator is:
stock market
An economy's potential output level is:
the output that is possible when all resources are fully employed.
Suppose that an economy is in a recession. You would expect to see the unemployment rate:
rise above the equilibrium unemployment rate.
Based on Okun's rule of thumb, if you forecast that the output gap will decline from 0% to -3%, the unemployment rate will:
rise by 1.5%.
What kind of data adjustment removes the effect of sales spikes due to the holiday season?
seasonally adjusted data
The Great Moderation refers to the:
decreased volatility of the U.S. economy.
Which of the following is a narrow indicator?
the stock price of a company
Which economic indicator tells you how fast wages and benefits are rising?
The employment cost index
The four stages of the business cycle are:
expansion, peak, recession, trough
If an economy has a positive output gap of 1.5%, this means:
GDP is 1.5% above potential GDP
Which of the following will fall when the economy is expanding?
Applications for unemployment benefits