ECO 561 Week 4 Quiz 100% Correct

1. Business cycles occur when output

2. Which of these statements best describes a complete individual business cycle?

3. During the business cycle, the period between the point at which output reaches a high and
the point at which it reaches a low is called

4. Which of the following equals the market value of all final goods and services produced in
an economy, stated in the prices of a specific base year?

5. Imagine a country has a population of 210 million. Within the country there are 95 million people who are employed workers, 50 million people incapable of working, and 60 million people capable of working, but not actively looking. Based on this information, what is the unemployment rate?

6. The unemployment produced by fluctuations in economic activity is called

7. New college graduates are most likely to experience

8.The natural rate of unemployment is defined as the

9. The Consumer Price Index (CPI) is based on:

10. Unanticipated inflation is a problem for society because it: