The growth rate of real GDP is slowing down, but it is still positive. The economy is ______________.

in an expansion
at a business-cycle peak
at a business-cycle trough
in a recession

In the country Zig, the population grows at 10 percent and real GDP grows at 10 percent. In the country of Zag, the population grows at 5 percent and real GDP grows at 10 percent. Average real GDP per person ___________________.

grows more quickly in Zig
grows more quickly in Zag
grows at the same rate in Zig and Zag
in Zig and Zag cannot be compared by using these data

During the 1990s, the United States experienced a ____________________________.

business-cycle recession, but one that was not as short as Japan's recession
business-cycle expansion, but one that was not as long as Japan's expansion
long business-cycle expansion
business-cycle recession

Which of the following statements about the U.S. and Canadian unemployment rates is false?

In 1992, each unemployment rate was less than it was in 1982.
In 1996, these unemployment rates were equal.
In the 1990s, the unemployment rates were never zero.
These unemployment rates exceed the Japanese unemployment rate.

Unemployment is a problem for all the following reasons except _________________________.

human capital is lost
the people who remain employed must learn new skills
some people have little income
production is lost

The unemployment rate usually falls __________________________.

during a recession
at a business-cycle trough
at a business-cycle peak
during a business-cycle expansion

On the planet of Argon, the price level was 100 in 1996, 125 in 1997, and 150 in 1998. Which of the following statements is true?

Argon's inflation rate has increased.
Argon's price level has been steady.
Argon's inflation rate has decreased.
Argon's inflation rate has remained constant.

Sam borrows $50,000 from Sue, and he promises to repay the money in one year. During the year, inflation unexpectedly increases. The unpredicted inflation creates _______________________.

an unexpected gain for Sam and an unexpected loss for Sue
an unexpected loss for both Sam and Sue
an unexpected gain for Sue and an unexpected loss for Sam
an unexpected gain for both Sam and Sue

Which of the following statements is true?

The U.S. international deficit tends to increase during an expansion.
Since 1985, the federal government's deficit has increased each year.
The U.S. international deficit tends to increase during a recession.
Since 1985, the federal government's deficit has decreased each year.

The challenges of macroeconomic policy include all the following except ______________________.

a smaller government budget deficit
a low inflation rate
a job for everyone who wants one
a positive economic growth rate

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