Macro ECON-for EOC (CFA #8)

A contraction of the monetary supply would MOST LIKELY result in

• Higher prices levels and lowering interest rates
• Higher interest rates and lowering price levels
• A lower reserve requirement, which would generate fewer loans
• A higher reserve requirement, which would generate more loans

If the Federal Reserve raises the reserve requirement, it is MOST LIKELY exercising

• A fiscal Policy
• Monetary Policy
• Fiscal Conservatism
• Monetary conservatism

Monetary policy includes actions

• By the judicial branch to regulate the money supply
• By individuals and states to regulate the money supply
• By the Federal Reserve System to regulate the money supply
• By states and the federal government to regulate the money supply

Fiscal policy is the federal government's attempt to

• Stabilize the economy through controlling the money supply
• Stabilize the economy through taxing and government spending
• Decrease aggregate demand by increasing government spending
• increase aggregate supply by increasing sales and property taxes

The Federal government is concerned that investment spending declined by $40 billion, and the unemployment rate is on the rise. To offset the economic slowdown, the federal government could

• Use fiscal policies to spend $40 billion in new projects and grants
• Use monetary policies to spend$40 billion in new projects and grants
• Use fiscal policies to decrease the money supply and cut unemployment rates
• Use monetary policies to decrease the money supply and cut unemployment rates

Which best describes GDP?

• Monetary value of all final goods and services produced within a country’s borders in a year
• Personal income and expenses each day
• It is a cycle of things and stuff
• Products shipped from one country to another for purchase

How do we measure economic growth?

• Increases in the price level, as indicated by the GDP chain price index
• Increases in fictional GDP
• Increases in real GDP
• Increases in the labor force

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• Leading economic indicator
• Full employment
• Unemployment rate
• Structural unemployment

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

• Deflation
• Monetary policy
• Stagnation
• Inflation

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities