part 13 14 15 unemployment are easilyT F 2. The labor force includes all people in the civilian non-institutionalpopulation.T FT FT FT FTFT FT FT FT Fbele year.3. The Consumer Price Index (CPI) is constructed by the Bureau of LaborStatistics.4. One of the major problems with relatively high inflation is that it tends tohurt economic activity and could destroy the market system eventually.5. There are two conceptually different ways to measure GDP: theexpenditure approach and investment approach.T F6. GDP is the value of all production during some specified period, usuallyone year.7. GNP (Gross National Product) minus depreciation equals NNP (NetNational Product).22T F 10. Business cycles are typically divided into four distinct phases: peak,contraction, recovery, and expansion.8. The expenditure approach to calculating GDP entails summing togetherwages, interest, rents, profits, indirect business taxes, and depreciation.9. Some of the policies that authorities took to combat the Great Depressionactually exacerbated it.11. Demand and supply analysis can be very useful in explaining price andoutput movements in markets, and in such broad aggregate variables asthe price level and national income.12. All else assumed constant, decreases in aggregate demand tend toresult in decreases in output and GDP.T F 13. All else assumed constant, increases in aggregate supply relative toaggregate demand tend to result in economic growth accompanied bydeflation.T F 14. Structural unemployment occurs because some firms fail in the normalcourse of business activity.15. A core ingredient to figuring out an inflation rate is the CPI (ConsumerPrice Index).

In an economy, the change in aggregate demand and aggregate supply has a significant impact on the…

T F 13. All else assumed constant, increases in aggregate supply relative to aggregate demand tend to result in economic growth accompanied by deflation. T F 14. Structural unemployment occurs because some firms fail in the normal course of business activity. T F 15. A core ingredient to figuring out an inflation rate is the CPI (Consumer Price Index).