Unit 3 Measuring Economic Activity and Policy

Front

Which of the following is used to measure economic growth? Consumer Price Index (CPI), Gross Domestic Product (GDP), Unemployment Rate, Federal Funds Rate

Back

Gross Domestic Product (GDP)

Front

What does the Consumer Price Index (CPI) primarily measure?

Back

Price stability

Front

Which type of unemployment is caused by changes in the seasons or weather?

Back

Seasonal unemployment

Front

Identify the stage of the business cycle characterized by increasing economic activity and employment.

Back

Recovery/Expansion

Front

How many districts are there in the Federal Reserve System?

Back

12

Front

What is the primary role of the Federal Open Market Committee (FOMC)?

Back

Setting the federal funds rate

Front

Which tool does the Federal Reserve use to influence the federal funds rate?

Back

Open market operations

Front

What is the dual mandate of the Federal Reserve?

Back

Price stability and full employment

Front

Which of the following is a consequence of a government budget deficit?
Options:
Decrease in national debt,
Increase in national debt,
Price stability,
Full employment

Back

Increase in national debt

Front

What is the effect of government spending on economic growth?

Back

It promotes economic growth