As a quick reminder, during economic booms, GDP rises, unemployment falls, and inflation tends to increase. During recessions, the opposite usually happens: GDP falls, unemployment rises, and inflation slows down.
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Type
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Markdown With Blanks
An economy reports that [[blank:GDP]] has been falling for two consecutive quarters. As a result, the [[blank:unemployment]] rate has increased, and the [[blank:inflation]] rate has slowed significantly. This is a classic recessionary pattern.
Suggested Answers
- GDP
- inflation
- unemployment
Type
Sort Into Boxes
Practice Question
Sort these economic characteristics into the correct phase of the business cycle.
Labels
- First Box Label: Economic Boom
- Second Box Label: Economic Recession
First Box Items
- Rising GDP
- Low unemployment
- Strong sales
Second Box Items
- High unemployment
- Falling inflation
- Layoffs
Type
Swipe Left or Right
Practice Question
Let's review unemployment types. Is the scenario describing Cyclical unemployment or part of the Natural Rate (Frictional/Structural)?
Labels
- Left Label: Cyclical
- Right Label: Natural Rate
Left Label Items
