Economics - Final Exam Review

Front

If the US economy were operating at the peak of the business cycle, what is an appropriate fiscal policy action?

Back

increase taxes to slow down inflation

Front

The Federal Reserve System conducts business directly with _____.

Back

the government and banks

Front

Structural Unemployment is _____. (U3)

Back

when someone loses a job to globalization

Front

A business that sells a variety of products within its store to attract many customers is called _____.

Back

conglomerate

Front

If the federal government wants to encourage consumer spending, a wise fiscal policy choice might be _____.

Back

decrease income taxes

Front

Which number pair is the flow of money to households as they go to work each day? (U2) Options: 1 to 3, 4 to 2, 5 to 7, 8 to 6

Back

8 to 6

Front

What basic economic problem do both higher-income and lower-income nations have in common?

Back

scarcity of resources

Front

Which organization has the primary responsibility to control the money supply?

Back

the Federal Reserve System

Front

Which of the following results when federal government expenditures are less than government receipts? (U3) trade surplus, trade deficit, budget surplus, budget deficit

Back

budget surplus

Front

Which of the following changes would MOST likely increase aggregate demand?
an increase in consumer debt,
an increase in business taxes,
a decrease in interest rates,
a decrease in government spending

Back

a decrease in interest rates