Chapter 14:
Economic Instability
1.
A period during which real GDP declines for two quarters in a row, or six consecutive months, is call a(n) ___________. It begins when the economy reaches a peak, and ends when the economy reaches a trough.
a.
recession
b.
expansion
c.
stagnation
d.
depression
2.
Changes in ____________ expenditures are one cause of business cycles.
a.
political
b.
healthcare
c.
education
d.
capital
3.
Because there are always some workers who are in the process of changing jobs, there will always be some ____________ employment in the economy.
a.
technological
b.
structural
c.
cyclical
d.
frictional
4.
Unemployment that occurs when a fundamental change in the operations of the economy reduces the demand for workers and their skills is called ___________ unemployment.
a.
technological
b.
structural
c.
cyclical
d.
seasonal
5.
To measure the price level, economists select a market basket of goods and then construct a price index such as the ______________.
a.
producer supply index, consumer supply index, or real GDP
b.
consumer price index, producer price index, or implicit GDP
c.
unemployment rate, inflation rate, or implicit GDP
d.
producer price index, unemployment rate, or real GDP
6.
Prices tend to _______ during expansions and then ________ during recessions.
a.
rise faster, slow down
b.
decrease, increase
c.
rise proportionally, decrease
d.
decrease exponentially, increase
7.
The ________ curve is a curve that shows how much the actual distribution of income varies from an equal distribution.
a.
Keynes
b.
Lorenz
c.
Reno
d.
Yellen
8.
One reason for the continued high poverty numbers is the __________.
a.
prevalent lack of education
b.
high unemployment rate
c.
growing gap in the distribution of income
d.
decreasing gap in the distribution of income
9.
A program that requires welfare recipients to provide labor in exchange for benefits is called ___________.
a.
labor-fare
b.
welfare
c.
workfare
d.
labor-benefits exchange
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Unit 1
Unit 2
Unit 3
Unit 4
Unit 5
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
Chapter 20
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