Unit 8

The dollar value of all final goods and services (output)  produced within a country's borders in a given year.

• total ouput
• Gross Domestic Product
• national income
• net domestic product

When a nation's exports exceed its imports and is calculated as exports - imports

• trade surplus
• trade deficit
• inventory
• gross domestic product

All of the following are characteristics of a growing economy EXCEPT

• Higher unemployment
• Lower unemployment
• Higher GDP
• Higher consumer spending

This is the series of periods of expanding and contracting economic activity

• Gross Domestic Product
• Business cycle
• National Income Accounting
• Microeconomics

Increasing unemployment and decreasing GDP is a sign of what part of the Business Cycle?

• Expansion
• Peak
• Contraction
• Hot Cheetos

An example of expansionary fiscal policy would be

• cutting taxes.
• cutting government spending.
• cutting production of consumer goods.
• cutting prices of consumer goods.

The federal government's overall approach to spending and taxes is called

• Physical Policy
• Fiscal Policy
• Money
• Monetary Policy

If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is 

• decreasing taxes.
• decreasing spending.
• decreasing the money supply.
• decreasing the reserve requirement.

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

• Deflation
• Monetary policy
• Stagnation
• Inflation

How could the Federal Reserve encourage banks to lend out more of their reserves?

• reduce the discount rate
• raise the required amount of reserve
• increase the prime rate
• reduce the money supply