Macroeconomics Review for Test

Front

What type of unemployment is Peggy MOST likely experiencing if she is unable to find a job that suits her interests right away? Options: Structural, Seasonal, Frictional, Cyclical

Back

Frictional

Front

Over a two-year period, the nation of Parthia experiences a steep decline in unemployment rate, a rise in GDP, and a stabilized price level. Parthia appears to be

Back

in the middle of a boom period.

Front

The BEST example of structural unemployment in an economy is someone whose job skills do not match the economy's needs.

Back

Structural unemployment occurs when a person's skills do not align with the job market's requirements.

Front

Which of the following results when federal government expenditures are less than the federal government's total receipts? Options: a trade surplus, a federal budget deficit, a negative balance of payments, federal budget surplus

Back

a federal budget deficit

Front

What problem might policymakers be trying to address MOST if they increase funding for training programs covering skills such as computer repair, programming, and networking?

Back

structural unemployment

Front

Which of the following is primarily responsible for the control of the money supply? Options: the United States Treasury, The Federal Reserve System, the Federal Deposit Insurance Corporation, the Comptroller of the Currency

Back

The Federal Reserve System

Front

The Federal Reserve wants to reduce the nation's money supply. This could be accomplished by doing all of the following EXCEPT: decreasing the discount rate, increasing the reserve requirement, selling securities on the open market, making banks hold a reserve for all types of deposits.

Back

decreasing the discount rate.

Front

If the federal government is attempting to encourage spending by consumers and businesses, a fiscal policy BEST serving this purpose would be:

Back

decreasing taxes.

Front

If the unemployment rate is rising and GDP is falling, what fiscal policy action should the federal government MOST likely follow? Options: decreasing taxes, decreasing spending, decreasing the money supply, decreasing the reserve requirement.

Back

decreasing taxes.

Front

What would you conclude about an economy characterized by increasing gross domestic product (GDP), low unemployment, and increasing inflation?

Back

This economy is in the expansion phase of a business cycle.