______________ is the value of total final production in an economy linked back to the prices of a single year.

Nominal GDP
GDP
Potential GDP
Real GDP

Real GDP is equal to potential GDP when __________________________.

economic growth is greater than usual
unemployment is low
the business cycle is at a peak
all productive resources are fully employed

In a business cycle, a peak is followed by a recession, a trough and then _______________________.

a period of inflation
a peak
a period of stagflation
an expansion

The business cycle _______________________.

is the fluctuation around GDP
can be accurately predicted
follows the phases of the moon
is periodic but irregular

Since 1980, the unemployment rate in the United States has been greater than the unemployment rate in ____________________.

Western Europe
Canada
Canada and Japan
Japan

The unemployment rate is the number of people unemployed expressed as a percentage of __________________.

the population minus the number of students
the population
the population minus the number of people who are retired
all the people who have a job or are looking for one

One measure of the price level is the ____________________.

average change in the CPI
inflation rate
economic growth rate
CPI

When an inflation occurs, ___________________________.

all families are spending more money on food
all prices are rising
oil prices are increasing
the average level of prices is rising

Fiscal policy does not include ______________________.

an increase in government purchases of goods and services
a cut in income tax rates
the building new highways
a cut in the interest rate

If the Federal Reserve expects inflation to increase and responds with an increase in the interest rate, the this action is an example of ______________________.

how a depression arises
fiscal policy
a business cycle
monetary policy

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