Unit IV – Test Review Questions - Response Sheet
Directions –
Name
Please read each question on the attached page and put all responses in the boxes below. You may use separate paper if you prefer.
GDP / GNP
Unemployment
Inflation
Business Cycles
Price Indices
1.
6.
11.
16.
21.
2.
7.
12.
17.
22.
3.
8.
13.
18.
23.
4.
9.
14.
19.
24.
5.
10.
15.
20.
25.
Unit IV – Test Review Questions
Test Format:
Question Distribution:
Collaborative Test – 82 Total Points
Section I – Matching (5 of the 10 vocab. words)
Section II – Multiple Choice (31 questions)
Section III – Short Answer (3 questions)
GDP / GNP
Unemployment
5 pts
62 pts
15 pts
In addition to this study guide, please
review all activities and assignments.
The same types of questions will be used on the test!
Inflation
Business Cycles
GDP and Price Indices
1.
6.
11.
16.
21.
What is the single most
important measure of
overall economic growth?
This type of
unemployment will
always be present.
Contrast inflation and
deflation.
What is the Index of
Leading Indicators used
for?
What market basket is a
representation of goods
and services used by the
average household?
2.
7.
12.
17.
22.
Which measure
(GDP/GNP) do
economists prefer to use
to measure a nation’s
economic production?
Who is not included in the
number of persons
unemployed?
How is inflation
measured?
Identify the period with
the most growth in the
U.S. in the 20th century.
What events helped spur
this growth?
What is a good measure of
economic growth in the
long-run? Define it.
3.
8.
13.
18.
23.
Contrast GDP and GNP.
What is full employment
and how does it differ
from “zero”
unemployment?
What are two major
How does declining
consequences of inflation? productivity hurt the U.S.
economy?
List three purposes of
price indices like the GDP
Price Deflator and
Consumer Price Index.
4.
9.
14.
19.
24.
List the four sectors of
spending and provide a
specific example of each.
Provide an example of
each type of
unemployment.
What is the difference
between demand-pull
inflation and wage-price
spiral?
Construct a business cycle
and label/describe each
component.
How does inflation distort
nominal GDP?
5.
10.
15.
20.
25.
Describe and provide
examples of 3 things not
included in GDP.
Characterize the four
types of unemployment.
Contrast creeping,
galloping, and
hyperinflation.
Describe four ways
economic growth benefits
the U.S. economy.
To determine if actual
production has changed
from year to year, what
type of GDP must we
analyze?