Bearcat Macro Review 2

This stage of the business cycle can also be called a contraction.

• expansion
• trough
• peak
• recession

Full employment is one of our 7 economic and social goals. What is the unemployment rate that would show we have achieved our goal?

• 2-3 %
• 4-6 %
• 7-8%
• anything below 10%

This would most definitely cause our nation's aggregate demand to shift to the right.

• increasing unemployment rates
• a recession
• decrease in cyclical unemployment
• increase in frictional unemployment

This type of budget requires government spending to equal government revenues.

• capital
• balanced
• personal
• none of the above

The amount of cash your bank keeps on deposit instead of lending it out.

• discount rate
• reserve requirement
• open market operations
• margin requirements

This action by the fed involves buying and selling government securities.

• discount rate
• reserve requirement
• open market operations
• margin requirements

A ___________________ economic system does not have any opportunity for technological improvements or competition among businesses

• command
• market
• mixed market
• traditional

Which fed tool involves lowering the rate your bank pays when it borrows money from the fed?

• interest rate
• discount rate
• federal funds rate
• prime rate

This type of tax is placed on imported goods to protect domestic industry.

• excise
• proportional
• tariff
• export

This type of fiscal policy was promoted by Republicans in the 80's and is said to focus on giving tax breaks to business to promote economic growth.

• supply side
• demand side
• Keynesian
• monetary