Economics

Front

The dollar value of all final goods and services (output) produced within a country's borders in a given year.

Back

Gross Domestic Product

Front

All of the following are characteristics of a growing economy EXCEPT: Higher unemployment, Lower unemployment, Higher GDP, Higher consumer spending

Back

Higher unemployment

Front

This is the series of periods of expanding and contracting economic activity

Back

Business cycle

Front

Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle? Options: Expansion, Peak, Contraction, Hot Cheetos

Back

Contraction

Front

An example of expansionary fiscal policy would be: cutting taxes., cutting government spending., cutting production of consumer goods., cutting prices of consumer goods.

Back

cutting taxes.

Front

The federal government's overall approach to spending and taxes is called

Back

Fiscal Policy

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 term is used to describe an increase in the general price level?

Back

Inflation

Front

How could the Federal Reserve encourage banks to lend out more of their reserves? Options: reduce the discount rate, raise the required amount of reserve, increase the prime rate, reduce the money supply

Back

reduce the discount rate

Front

During a recession, which of the following is likely to occur? an increase in real wages, an increase in production, an increase in the GDP growth rate, an increase in the unemployment rate

Back

an increase in the unemployment rate