Chapter 13 Econ Test
How did business cycles change after World War II?
Recessions became shorter and periods of expansion became longer.
a shift toward a decrease in unemployment
economic indicator would most likely indicate an upcoming economic expansion?
Stops the economy from growing and turn an expansion into a contraction.
external shocks
Which type of unemployment is natural in a free market economy, where workers have the freedom to change occupations?
frictional unemployment
demand-push
not a cause of inflation
The Federal Deposit Insurance Corporation (FDIC) was created to ____.
provide modest bank insurance for depositors
A decline in real GDP lasting at least two quarters or more is called a ____.
recession
6. What is the first step in constructing a price index?
select a representative selection of commonly purchased goods and services
Inflation
tempts some people to speculate in an attempt to take advantage of rising prices.
a period during which real GDP declines for at least two quarters in a row
the first phase of a business cycle
consumer price index
tracks monthly changes in prices paid by urban consumers
NOT a form of unemployment
underemployment
cost-push inflation
A sudden rise in the price of cotton raises the price of clothing and household products.
Which group has the highest unemployment rate in the U.S.?
African Americans
What does a trough indicate?
The GDP has stopped declining and has begun to increase.
How are the effects of U.S. inflation rates felt around the world?
U.S. inflation makes U.S. exports more expensive overseas.
A person would not included in the civilian labor force?
an army general who works in Washington, D.C.
A period of recovery from a recession is known as _____.
an expansion