Macroeconomics Flashcard

Front

What are the four main components of GDP?

Back

Consumption, Investment, Government spending, Net exports

Front

Which type of unemployment occurs when there is a mismatch between the skills of the unemployed and the skills needed for available jobs?

Back

Structural unemployment

Front

What is the primary cause of demand-pull inflation?

Back

Increase in aggregate demand

Front

Which phase of the business cycle is characterized by rising GDP and employment?

Back

Expansion

Front

What is the main objective of fiscal policy in macroeconomics?

Back

To stabilize the economy

Front

Which component of GDP would increase if the government decides to build more highways?

Back

Government spending

Front

What type of unemployment is typically short-term and occurs due to people switching jobs or entering the workforce?

Back

Frictional unemployment

Front

Cost-push inflation is primarily caused by: A surge in consumer demand, A drop in unemployment rates, An increase in the costs of production, A reduction in taxation

Back

An increase in the costs of production

Front

During which phase of the business cycle does unemployment typically begin to rise? Options: Expansion, Peak, Contraction, Trough

Back

Contraction

Front

Which of the following is a tool of fiscal policy? Interest rates, Government spending and taxation, Currency valuation, Stock market regulations

Back

Government spending and taxation