Unit 2 check

Unit 2 check: Economic Indicators and the Business Cycle

10 questions from 7 lessons in Unit 2. Answer each one, and if you miss, follow the link back to where it is taught, then try again. Your score counts first tries.

Question 1 · from 2.1 · Sort it

Each of these happens in 2026. Tap a transaction, then tap where it belongs.

Counted in 2026 GDP

Not counted in 2026 GDP

Question 2 · from 2.2 · Multiple choice

Which of the following is included when a country measures its GDP?

Question 3 · from 2.3 · Decide and justify

In Fenmore County, 1,200 people who were counted as unemployed stop looking for work because they believe no jobs are available. Nobody finds a job, and the county's unemployment rate falls. Does the lower rate show that fewer people in Fenmore County are without jobs?

Which reason supports your choice?

Question 4 · from 2.4 · Multiple choice

From December 2015 to December 2024, the U.S. CPI for all urban consumers rose 33.4 percent, while the chained CPI, whose basket shifts as buyers switch between goods, rose 30.0 percent. What best explains why the CPI rose more?

Setup for question 5

Each question here gives you a deal written in dollars and a year when prices did not go as planned. Before you decide who gains, find who is owed the fixed dollars.

Question 5 · from 2.5 · Calculate

Two unions at one factory signed one-year contracts in January, when everyone expected 3% inflation. A millwright earning $4,000 a month gets a fixed raise to $4,120 a month. An electrician earning $4,000 a month has a cost-of-living clause instead: her monthly pay is $4,000 times the current price index divided by 100. The price index was 100 in January and 109 in December. Measured in January dollars, how much more does the electrician's December paycheck buy than the millwright's? Round to the nearest dollar.

Your answer dollars

Setup for question 6

Morvik is a fictional economy. Its statistics agency publishes these figures, in billions of dollars. Real GDP is valued at Year 1 prices, the base year. Three cells are left blank for you to work out.

Morvik's national accounts
Year	Nominal GDP	Real GDP	GDP deflator
1	$800	$800	100
2	$832	?	104
3	?	$850	109.72
4	$1,035	$900	?

Question 6 · from 2.6 · Calculate

In Year 3, Morvik's real GDP is $850 billion and its GDP deflator is 109.72, with Year 1 as the base year. What is Morvik's nominal GDP in Year 3, in billions of dollars, to the nearest billion?

Your answer billion dollars

Setup for question 7

NBER publishes the dates of every U.S. peak and trough. These are its four most recent cycles, read from its table on October 14, 2026 (the table says its data were last updated on March 14, 2023). A recession starts in the month after the peak and ends in the month of the trough.

U.S. business cycle peaks and troughs. Source: NBER, US Business Cycle Expansions and Contractions, read October 14, 2026.
Peak	Trough	Recession length (months)
July 1990	March 1991	8
March 2001	November 2001	8
December 2007	June 2009	?
February 2020	April 2020	2

Now read a graph. A business cycle graph puts real GDP on the vertical axis and time on the horizontal, with a rising line for potential real GDP. Some graphs draw actual real GDP as a smooth curve and mark points T1, T2 and so on. The chart for Tavor, a fictional economy, plots it as one dot per quarter. Read a phase from the way the dots move from one quarter to the next, and the output gap from where each dot sits against the line.

Tavor's real GDP and potential output

Dots: real GDP each quarter. Line: economists' estimate of potential output.

Question 7 · from 2.7 · Match

Use Tavor's chart of real GDP by quarter. Tap a quarter, then tap what Tavor's economy is going through in that quarter.

Question 8 · from 2.1 · Fill the statement

Tap a blank, then tap a phrase.

In the factor market, households sell to firms and are paid . They spend that money on goods and services, which is why a year's total spending on final output equals its total . Money and goods travel the loop in directions.

Question 9 · from 2.2 · Fill the statement

Tap a blank, then tap a phrase.

In Bexley last year, GDP measured at the same prices both years rose 2 percent and the population rose 5 percent. The number to judge the average standard of living by is , which last year, so by that measure the average person was .

Question 10 · from 2.3 · Sort it

Tap a worker, then tap the type of unemployment that describes them.

Frictional

Structural

Cyclical

0 of 10 answered.