SIE Exam Unit 11 - Issues

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

A recession, coinciding with an economic contraction

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

Changes in durable good inventories

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

Changes in durable good inventories

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

Changes in durable good inventories

Changes in industrial production and hours worked are _____________________ indicators.

Coincident

Changes in industrial production and hours worked are ______________________ indicators

Coincident

Personal income is a _________________ indicator.

Coincident

Personal income is a ___________________ indicator

Coincident

Personal or household incomes are _____________________ indicators

Coincident

Trade sales, retail employment, and personal income are all __________________ indicators

Coincident

Trade sales, retail employment, and personal income are all __________________ indicators.

Coincident

Trade sales, retail employment, and personal income are all ____________________ indicators.

Coincident

Wages and gross domestic product are _____________________ indicators

Coincident

Indicators moving up and down along with the overall economy

Coincident Indicators

Indicators that move along with economic activity

Coincident Indicators

Measures all the output only within a nation's borders

Gross Domestic Product

A measure of only the economic output of a country's citizens and companies, regardless of location.

Gross National Output

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

Gross National Product

Stagflation generally occurs when the economy isn't __________________, yet prices for goods are still _________________

Growing, Rising

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

Household Income

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

Increase in the consumer loans to personal income ratio

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

Increase in the consumer loans to personal income ratio

Characterized by a rise in prices for goods and services

Inflation

Characterized by a rise in prices for goods and services.

Inflation

Changes in the ratio of consumer installment credit to personal income is a __________________ indicator

Lagging

Changes in the ratio of consumer installment credit to personal income is a ___________________ indicator

Lagging

Changes in unemployment are _____________________ indicators.

Lagging

Corporate profits are ______________________ indicators

Lagging

Corporate profits, labor cost per unit of output, and outstanding commercial loans are ____________________ Indicators

Lagging

Corporate profits, labor cost per unit of output, and outstanding commercial loans are _____________________ indicators.

Lagging

Indicators that follow economic activity

Lagging Indicators

Changes in durable goods inventories (whether an increase or decrease) is a _____________ economic indicator

Leading

Changes in durable goods inventories (whether an increase or decrease) is a ___________________ economic indicator

Leading

Changes in durable goods inventories (whether an increase or decrease) is a ____________________ economic indicator

Leading

Changes in raw materials orders is a _________________ indicator.

Leading

Changes in raw materials orders is a _______________________ indicator

Leading

Equity prices and housing starts are both ______________________ indicators

Leading

New orders for consumer goods is a _________________ indicator

Leading

When someone wants to know what future economic activity may be, she would be most interested in what types of indicators?

Leading

Indicators that move in advance of economic activity

Leading Indicators

Type of indicator foretelling future economic activity

Leading Indicators

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

New orders for consumer goods

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

Personal Income

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

Personal Income

Stagnation is defined as prolonged periods of _______________/____________ economic growth accompanied by ________________ unemployment

Slow, Little, High

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) contraction. C) stagnation. D) deflation.

Stagflation

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) stagnation. B) deflation. C) stagflation. D) contraction.

Stagflation

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) inflation. B) deflation. C) stagflation. D) stagnation.

Stagflation

Generally occurs when the economy isn't growing (there is a lack of consumer demand and business activity), yet prices for goods are still rising

Stagflation

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

Stagflation

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) deflation. B) inflation. C) stagflation. D) stagnation.

Stagflation

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) deflation. B) stagnation. C) stagflation. D) inflation.

Stagflation

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) deflation. C) stagnation. D) stagflation.

Stagflation

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) stagnation. C) stagflation. D) deflation.

Stagflation

The rare occurrence where the economy is contracting and income is dropping but prices are still rising

Stagflation

The term used to describe the unusual combination of inflation (a rise in prices) and high unemployment

Stagflation

When prices for goods and services are rising (inflation) during times when the economy isn't growing (stagnation), the economy is known to be in a period of _____________________

Stagflation

When prices for goods and services are rising (inflation) during times when the economy isn't growing (stagnation), the economy is known to be in a period of what?

Stagflation

When stagnation & inflation occur simultaneously

Stagflation

Characterized by high unemployment and lack of growth and business activity

Stagnation

Defined as prolonged periods of slow or little economic growth accompanied by high unemployment

Stagnation

Defined as prolonged periods of slow or little economic growth accompanied by high unemployment.

Stagnation

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) stagnation. C) deflation. D) stagflation.

Stagnation

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) stagnation. C) stagflation. D) deflation.

Stagnation

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

Stagnation