Macroeconomics Review

Front

This (now defunct) organization was replaced in 2020 and allowed for free trade between Canada, Mexico, and the United States.

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North American Free Trade Agreement (NAFTA)

Front

Which of the following is a benefit of a free trade agreement? Limited access to foreign markets., Decreased tariffs on imports only., Increased government regulations on trade.

Back

It provides access to more markets and goods around the world

Front

One of the largest trade organizations in the world, this group makes up almost a whole continent and uses one central currency

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European Union

Front

Which of these will the government do to repay the national debt? I Cut spending. II Raise taxes. III Increase interest rates. IV Borrow more money.

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I and II only

Front

Based on the circular flow of business, what are two ways that households impact the economy?

Back

They provide the four factors of production and spend money on the product market.

Front

Which flow of income would BEST represent an outflow from the government at the national level? Options: Tax revenue, Interest payments, Public debt repayment, Welfare payments

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Welfare payments

Front

The US government wishes to implement a fiscal policy with the goal of growing the US economy. Which of the following would be an example of expansionary fiscal policy? Increasing tariffs on imported goods., Cutting taxes for high-income earners., Increasing government spending on infrastructure projects. And decreasing taxes, Reducing government funding for education.

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Increasing government spending on infrastructure projects. And decreasing taxes

Front

What can monetary policymakers do to slow the rate of inflation? Options: Give incentives for people to save, Encourage higher wages across all sectors., Lower interest rates and increase government spending., Implement price controls on essential goods.

Back

Give incentives for people to save

Front

The buying and selling of bonds and other securities by the central bank is called

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open market operations

Front

Interest rate charged between banks for overnight loans to each other is called

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federal funds rate