Test Answers on Chapter 14 study guide – Flashcards
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True or false. The where's downturn of the business cycle in the United States occurred during the Cold War.
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False
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True or false. The two phases of the business cycle are peaks and troughs.
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False.
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True or false. The unemployment rate is calculated by dividing the number of unemployed persons by the total number of persons in the civilian labor force
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True
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True or false. The unemployment rate does not take into account the number of part-time workers who want to have full-time jobs
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True
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True or false. Full employment is reached when the unemployment rate drops below 7%
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False
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True or false. The unemployment rate is determined by the Bureau of the Census.
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True
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The business cycle since World War II has been characterized by what
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Extend an expansions alternating with brief recessions
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Unemployment that is directly related to swings in the business cycle is
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Cyclical unemployment
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According to the cost push theory, inflation is caused by
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Workers
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This marked the beginning of the great depression in 1929
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Stock market crash
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Changes in technology and changes in consumer taste can cause
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Structural unemployment
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According to the demand pool theory, inflation is caused by
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Consumers
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The Lorenz curve is used to demonstrate
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The degree of income inequality
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What type of unemployment does the cartoon depict
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Technological
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In the graph what does the straight diagonal line represent
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Equality of income
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Systematic ups and downs of the real GDP
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Business cycle
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Location where companies are free to certain local state and federal tax laws
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Enterprise zone
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Percent of people out of work divided by the total number of people in the civilian labor force
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Unemployment rate
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Unemployment caused with machines replaced people
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Technological unemployment
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State of the economy characterized by high unemployment a cute shortages and excess production capacity
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Depression
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Decrease in the general price level
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Deflation
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Caused by fundamental change in the operations of the economy
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Structural unemployment
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Periods during which the real GDP declined for two quarters in a row or for six consecutive months
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Recession
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Economic and social programs that provide regular assistance to the needy
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Welfare
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Unemployment resulting from changes in the weather or change in the demand for certain products
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Seasonal unemployment
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Inflation in the range of 500% a year and above
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Hyper inflation
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Monthly statistical series the anticipates change to the real GDP
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Index of leading indicators
