ScienceEconomicsUnit 5 Test Review Econn/Finance
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Unit 5 Test Review Econn/Finance

Amy Miller avatar Amy Miller
18 October 2022
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12 test answers

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question
What term is used in macroeconomics to describe the total supply and the total demand?
answer
aggregate
question
As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David?
answer
cyclically unemployed and unemployed
question
Describe the circular flow model?
answer
The model represents the movement of money throughout the economy.
question
What is the difference between inflation and deflation?
answer
Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
question
How do consumers' feelings about the economy help contribute to growth?
answer
Positive consumer attitudes influence spending habits.
question
What decisions does the business cycle help businesses make?
answer
- whether to grow or shrink the business - whether to increase or decrease production - whether to hire or lay off workers - whether to invest or save money
question
The exchange of factors of production for income occurs in the ?
answer
factor market
question
What is the name of the period when an economy begins to shrink?
answer
recession
question
Does a depression always follow a recession?
answer
No, a depression is indicated when the recession is exceptionally long.
question
What are the signs of low inflation?
answer
- Demand steadily rises. - Prices continue to increase. - The economy grows in a healthy way.
question
Cost-push inflation occurs when
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producers need more money to make and distribute goods.
question
The most common measure of inflation is a statistic called the ?
answer
consumer price index