Judge each claim about the economy

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   When GDP rises, the economy is growing.

2. Statement is true

   No

   Statement

   Full employment means that 100 percent of people have jobs.

3. Statement is true

   Yes

   Statement

   A decline in GDP lasting two consecutive quarters is called a recession.

4. Statement is true

   No

   Statement

   Inflation increases the value of what money can buy.

5. Statement is true

   Yes

   Statement

   Frictional unemployment is short term and always present.

6. Statement is true

   No

   Statement

   Seasonal unemployment strikes only during a long recession.

Instructions

Read each claim carefully, then tap True or False.

Explanation