3. Investment happens when: A. Current income is greater than current spendingB. Current consumption is greater than current outputC. Resources are devoted toward increasing current outputD. Resources are devoted toward increasing future output4. There is a trade-off between: 5. The amount of investment is ultimately limited by the amount of: 6. What impact will a negative demand shock have on the main measures of economic performance?
7. GDP is the market value of: A. Resources (land, labor, capital, and entrepreneurship) in an economy in a given yearB. All final goods and services produced in an economy in a given yearC. Consumption and investment spending in an economy in a given yearD. All output produced and accumulated over the years8. The largest expenditure component of GDP is: 9. If the price index in year A is 130, this means that: 10. GDP measured using current prices is called: 11. The recurrent ups and downs in the level of economic activity extending over several years are referred to as: A. Economic phasesB. Business startupsC. Business cyclesD. Noncyclical fluctuations12. Unemployment that occurs when there is deficient demand for the goods and services of an economy is called:
13. New college graduates still looking for their first jobs would be classified in the BLS data as: 14. Which measure of inflation would include consumer goods and capital goods? 15. Inflation that occurs when total spending is greater than the economy's ability to produce output at the existing price level is: A. Anticipated inflationB. Demand-pull inflationC. Cost-push inflationD. Unanticipated inflation16. Unanticipated inflation arbitrarily: 17. In what circumstances would lenders most benefit?
1. D2. A3. D4. C5. B6. B7. B8. B9. C10. A11. C12. B13. A14. A15. B16. B17. A
You've reached the end of your free preview.
Want to read all 9 pages?