Econ-Economic Instability Quiz

Question	Term
This type of unemployment occurs when machines replace the work of people.
monthly statistical series that anticipates changes in real GDP
During the late 1990s, the US experienced _____ inflation, at a rate of about 3 percent per year.
One cause of the business cycle is _____ _____, inventories are reduced at the first sign of a decline in the market.
One cause of the Great Depression was economic conditions in other parts of the _____.
unemployment resulting from changes in the weather or changes in the demand for certain products
The _____ _____ is used to demonstrate the degree of income inequality.
One cause of the business cycle is _____ and _____, when a new product or a new way of performing a task is developed and competitors invest heavily to catch up.
percent of people out of work divided by the total number of people in the civilian labor force.
caused by a fundamental change in the operations of the economy
point where real GDP stops going up
proposed type of tax that would make cash payments to certain groups who live below the poverty line
The income gap has ____ since the 1980s.
After GDP bottoms out, the economy moves into a period of _____, which is the second phase of the business cycle.
Ideally, the _____ ____ will remain under 4.5 percent, which indicates nearly full employment
inflation in the range of 1 to 3 percent per year
One cause of the business cycle is _____ _____, companies may adjust their investments in capital goods.
When the GDP declines for six months in a row, economists know the economy is in a _____.
Economists calculate the inflation rate by dividing the _____ in price level by the beginning price level and multiplying by 100.
Changes in consumer technology and changes in consumer tastes can cause what type of unemployment?
decrease in the general price level
This marked the beginning of the Great Depression in 1929.
The broad term for economic and social programs that provide regular assistance to people in need is ____.
If inflation reaches 100 to 300 percent, the economy is in a state of _______ inflation
One cause of the Great Depression was disparity in the _____ of income.

Question	Term
Although _______ is very rare, prices of goods did decrease during the Great Depression.
The business cycle since World War II has been characterized by brief _______.
systematic ups and downs of the real GDP
A _____ is the lowest point where a recession ends and expansion begins.
If the economy reaches a state in which large numbers of people are out of work, there are shortages of consumer products, and manufacturing plants sit idle, it is clear that the e
One cause of the business cycle is _______ factors, the result of credit and loan policies of the Federal Reserve.
The government issues ____ ____ to ensure that people living in poverty receive enough food to eat.
One cause of the Great Depression was easy and plentiful ____.
intense form of inflation that can go as high as 100 to 300 percent
annual dollar amounts used to determine whether people are living in poverty
According to the _____________ theory, inflation is caused by businesses, government, and consumers with excessive demand.
can provide cash to low-income workers
A decline in _____ is one reason for the growing income gap.
A shift from married-couple families to _______ families is one reason for the growing income gap.
One cause of the Great Depression was high American tariffs on ______, which kept many countries from selling goods to the US.
turnaround point where real GDP stops going down
The business cycle since World War II has been characterized by extended _________.
inflation in the range of 500 percent a year and above
A shift in employment from the manufacturing to the ______ industry is one reason for the growing income gap.
Unemployment that is directly related to swings in the business cycle is _____.
period during which real GDP declines for 2 quarters in a row or 6 consecutive months
location where companies are free of certain local, state, and federal tax laws
state of the economy characterized by high unemployment, acute shortages, and excess production capacity
Many cities establish ______ ____ to encourage businesses to locate in poorer sections of the region so that jobs will become available to the working poor.
On the Lorenz curve, perfect equality of income is represented by a ______ line.

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