Tools of Economic Policy

Economists use these tools to decide how the economy is functioning

• opinions
• surveys
• newspaper reports
• economic indicators

The following economic indicator gives the percentage of people who are looking for jobs but cannot find one.

• consumer price index
• employment rate
• unemployment rate
• inflation rate

During the economic recession of 2008, what likely happened to the unemployment rate?

• it went up
• it went down
• it was not affected

A general rise in overall prices is called:

• Deflation
• Inflation
• Consumer Price Index
• Federal Reserve

The quantity of goods and services a person can buy with a given amount of money.

• Bank
• Inflation
• Buying Power
• Money Supply

This group of people benefit from inflation:

• Lenders
• Savers
• Borrowers
• Businesses

An index that measures the prices of a market basket of goods that typical consumers purchase.

• Consumer Price Index
• Federal Reserve
• Bank
• Deflation

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government

High levels of GDP per capita indicate...

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

The value of the output of all final goods and services produced within a country in a year.

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