#1
Which of the following is not considered a leading economic indicator?
Stock market performance
Average weekly jobless claims
Consumer Price Index (CPI)
Building permits
#2
In which phase of the business cycle does unemployment typically reach its lowest point?
Peak
Trough
Expansion
Recession
#3
What is the primary tool used by central banks to control the money supply?
Fiscal policy
Monetary policy
Exchange rate policy
Trade policy
#4
Which of the following is not a measure of inflation?
Consumer Price Index (CPI)
Producer Price Index (PPI)
Gross Domestic Product (GDP)
Personal Consumption Expenditures (PCE)
#5
What is the duration of a typical business cycle?
6-8 years
2-4 years
10-12 years
Depends on economic conditions
#6
Which of the following is a fiscal policy tool?
Open market operations
Setting reserve requirements
Government spending
Discount rate
#7
What is the main purpose of GDP (Gross Domestic Product)?
To measure the total value of goods and services produced within a country's borders
To measure the total value of goods and services consumed within a country's borders
To measure the total value of goods and services traded internationally by a country
To measure the total value of goods and services produced and consumed by a country
#8
Which of the following is not a component of GDP?
Government spending
Exports
Imports
Personal consumption expenditures
#9
What is the Phillips curve relationship?
There is a positive relationship between inflation and unemployment
There is a negative relationship between inflation and unemployment
There is no relationship between inflation and unemployment
There is a linear relationship between inflation and unemployment
#10
Which of the following is a lagging economic indicator?
Consumer Confidence Index (CCI)
Retail Sales
Gross Domestic Product (GDP)
Average Duration of Unemployment
#11
What is the formula to calculate GDP using the expenditure approach?
GDP = C + I + G + (X - M)
GDP = C + I + G + X + M
GDP = C + I + G - (X - M)
GDP = C + I + G - X - M
#12
Which of the following is not a characteristic of a recession?
Decline in GDP
Rising unemployment rates
Decrease in consumer spending
Increase in business investments
#13
What does the unemployment rate measure?
The percentage of the labor force that is jobless and actively seeking employment
The percentage of the population that is jobless, regardless of whether they are seeking employment
The percentage of the population that is employed, regardless of the type of job or hours worked
The percentage of the labor force that is jobless due to being discouraged from seeking employment
#14
What does the term 'stagflation' refer to?
High inflation accompanied by high unemployment and stagnant economic growth
Low inflation accompanied by high unemployment and stagnant economic growth
High inflation accompanied by low unemployment and stagnant economic growth
Low inflation accompanied by low unemployment and stagnant economic growth
#15
What is the primary goal of expansionary monetary policy during a recession?
To decrease the money supply
To increase interest rates
To decrease government spending
To stimulate economic growth by increasing the money supply and lowering interest rates
#16
What does the term 'double-dip recession' refer to?
A recession followed by a period of economic stagnation
A recession that is twice as severe as a typical recession
A recession followed by a brief period of recovery before entering another recession
A recession that affects only a specific industry or sector
#17
What is the primary goal of contractionary monetary policy?
To stimulate economic growth
To decrease the money supply and increase interest rates
To decrease taxes and increase government spending
To decrease inflation