Economic Fluctuations and Spending Patterns Quiz

Economic recession involves a decline in Gross Domestic Product (GDP).

A recession is a prolonged period of economic contraction.

Recession is characterized by a decline in economic activity often accompanied by high unemployment.

GDP measures the total value of goods and services produced within a country's borders in a specific time period.

The business cycle refers to the recurring pattern of expansion and contraction in economic activity.

An economic boom is characterized by a period of rapid growth in Gross Domestic Product (GDP).

Long-term unemployment is a characteristic of an economic depression.

Stock market performance is often considered a leading indicator reflecting economic trends.

Hyperinflation describes a scenario of extremely high inflation rates during economic overheating.

A depression is a prolonged and severe decline in economic activity.

Disposable income is a key factor influencing consumer spending in the Keynesian model.

Stagflation is a term used to describe a situation with both high inflation and high unemployment.

Government spending is a component of aggregate demand in macroeconomics.

The Consumer Price Index (CPI) is a measure of the overall level of prices in an economy.

Imports are not considered a component of aggregate expenditure in the Keynesian model.

Fiscal policy, related to taxation and spending, is not a tool used by central banks for controlling the money supply.

Deflation is a situation where the overall price level of goods and services in an economy decreases.

Economic stagnation refers to a prolonged period of slow economic growth and high unemployment.

Deflation is a situation where an economy experiences a prolonged period of declining prices.