1
.
Demand is the _______________.
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amount of a good or service that consumers need
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amount of a good or service that consumers want to purchase at the equilibrium price
-
quantity of a good or service that consumers want to purchase minus the amount that producers are currently supplying
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quantity of a good or service that consumers are willing to purchase at various prices over a given time period, ceteris paribus
2
.
An increase in supply will lead to _______________.
-
a lower equilibrium price and a lower equilibrium quantity
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a higher equilibrium price and a lower equilibrium quantity
-
a higher equilibrium price and a higher equilibrium quantity
-
a lower equilibrium price and a higher equilibrium quantity
3
.
An increase in the price of a basket of goods is known as _______________.
-
inflation
-
falling GDP
-
rising GDP
-
a change in quantity demanded
4
.
The unemployment rate equals _______________.
-
the number of people unemployed divided by the labor force
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the number of people seeking work divided by the adult population
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the number of people unemployed divided by the number of people employed
-
the number of people unemployed plus the number of people working part-time divided by the adult population
5
.
To be considered unemployed, an individual must be _______________.
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out of work
-
actively seeking a job
-
able to work
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All of the above
6
.
When measuring GDP, purchases are divided into the four broad categories of _______________.
-
interest rates, inflation, unemployment, and investment
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demand, inflation, interest rates, and government spending
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imports, exports, loanable funds, and government spending
-
consumer spending, investment, government spending, and net exports
7
.
A business cycle is measured from _______________.
-
one peak to the next trough
-
one trough to the next trough
-
one trough to the next peak
-
the time of the highest unemployment rate to the time of the lowest unemployment rate
8
.
Which of the following economic environments would most likely be associated with a recession?
-
Unemployment falling to 30-year low
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GDP growing at an annual rate of 4.2%
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Unemployment increasing from 5% to 9% during the year
-
New businesses opening in record numbers while new housing starts reach a 10-year high
9
.
The interest rate is the _______________.
-
rental cost of money
-
increase in the price of a market basket of goods
-
measure of economic activity
-
speed at which the money supply is increasing
10
.
If the nominal interest rate is 9% and the rate of inflation is 2%, the real rate of interest is approximately _______________.
-
7%
-
11%
-
18%
11
.
A foreign exchange rate is _______________.
-
the rate of inflation in a foreign country
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the amount of imports a country has relative to its exports
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the price of one currency in terms of another currency
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the rate of unemployment in one country compared to the rate in another country
12
.
In 2020, the CPI in a country is 120. In 2021, the CPI in the same country is 126. This would mean that inflation is _______________.
-
5%
-
6%
-
26%
-
46%