ECON 247 CERTIFICATION FINAL STUDY PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Component of GDP - Government Spending. Answer: all spending
on the goods & services purchased by government at the federal,
state, and local levels.
EXCLUDES - transfer payments
◉ Component of GDP - Net Exports. Answer: exports minus imports
Exports represent foreign spending on the economy's goods &
services.
◉ Type of unemployment - Frictional. Answer: "Temporarily
unemployed" or being between jobs.
-Individuals are qualified workers with transferable skills but they
aren't working.
◉ Type of unemployment - Seasonal. Answer: -This is a specific type
of frictional unemployment which is due to time of year and the
nature of the job.
, -These jobs will come back
◉ Type of unemployment - Structural. Answer: -Changes in the
structure of the labor force make some skills obsolete.
-Workers DO NOT have transferable skills and these jobs will never
come back.
-Workers must learn new skills to get a job.
◉ Type of unemployment - Cyclical. Answer: Unemployment that
results from economic downturns (recessions).
-As demand for goods and services falls, demand for labor falls and
workers are fired.
◉ Business Cycle Phase - Expansion. Answer: period of economic
growth
1. less unemployment
2. increase in real GDP
3. Rapid job growth
2026 COMPLETE QUESTIONS AND ANSWERS
◉ Component of GDP - Government Spending. Answer: all spending
on the goods & services purchased by government at the federal,
state, and local levels.
EXCLUDES - transfer payments
◉ Component of GDP - Net Exports. Answer: exports minus imports
Exports represent foreign spending on the economy's goods &
services.
◉ Type of unemployment - Frictional. Answer: "Temporarily
unemployed" or being between jobs.
-Individuals are qualified workers with transferable skills but they
aren't working.
◉ Type of unemployment - Seasonal. Answer: -This is a specific type
of frictional unemployment which is due to time of year and the
nature of the job.
, -These jobs will come back
◉ Type of unemployment - Structural. Answer: -Changes in the
structure of the labor force make some skills obsolete.
-Workers DO NOT have transferable skills and these jobs will never
come back.
-Workers must learn new skills to get a job.
◉ Type of unemployment - Cyclical. Answer: Unemployment that
results from economic downturns (recessions).
-As demand for goods and services falls, demand for labor falls and
workers are fired.
◉ Business Cycle Phase - Expansion. Answer: period of economic
growth
1. less unemployment
2. increase in real GDP
3. Rapid job growth
