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Check Your Understanding
Below are some of the major concepts from Chapter Fourteen. See how well you
know the chapter by taking the quiz. Check your answers below the quiz.
1. Unemployment that is directly related to swings in the business cycle is
__________.
2. Changes in technology and changes in consumer tastes can cause ________.
3. According to the demand-pull theory inflation is caused by _____.
4. The Lorenz curve is used to demonstrate ___________.
5. Intense form of inflation that can go as high as 100 t 300 percent is
____________.
6. Unemployment caused when machines replace people
7. Caused by a fundamental change in the operations of the economy
8. Inflation in the range of 1 to 3% per year
9. Turnaround point where real GDP stops going down
10. Systematic ups and downs of the Real GDP
11. Annual dollar amounts used to determine whether people are living in poverty
12. Can provide cash to low-income workers
13. Unemployment resulting from changes in the weather or changes in the demand
for certain products
Answers…
1. cyclical unemployment
2. structural unemployment
3. consumers
4. the degree of income inequality
5. galloping inflation
6. technological unemployment
7. structural employment
8. creeping inflation
9. trough
10. business cycle
11. poverty guidelines
12. earned income tax credits
13. seasonal unemployment