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Macroeconomics

Social Studies

12th Grade

Used 21+ times

Macroeconomics
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28 questions

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1.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following actions might the Federal Reserve take together that will both increase the money supply?

open market sales, decreasing the reserve requirement

increasing the reserve requirement, decreasing the discount rate

open market purchases, increasing the reserve requirement

open market purchases, decreasing the reserve requirement

2.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The IRS lays off thousands of employees every year after April 15th. This is an example of

seasonal unemployment

cyclical unemployment

frictional unemployment

structural unemployment

3.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

What can one assume from the following headline: "President and Congress Feud Over Fiscal Policy"?

The President and Congress cannot agree on a tax plan and/or budget.

The President favors higher taxes, but Congress opposes them.

Congress and the President cannot agree on defense spending.

Congress and the President cannot agree on interest rates.

4.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

If the government of Sri Lanka spends $13 million more this year than it receives in revenue, what can we say for certainty?

Sri Lanka's revenue will grow.

Sri Lanka will experience a budget deficit.

Sri Lanka will experience a trade deficit.

Sri Lanka will experience a trade surplus.

5.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Congress approves a budget that allocates spending on defense, education, social programs, etc., but also increases taxes to pay for this. What does this plan define?

the government's monetary policy

the government's revenue

the government's reserves requirement

the government's fiscal policy

6.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

Which of the following is a monetary policy that might be used to reduce inflation?

decreasing taxation

decreasing the discount rate

open market sales

increasing government spending

7.

MULTIPLE CHOICE QUESTION

1 min • 1 pt

The consumer price index (CPI) is an indicator of which of the following?

the size of the economy

the velocity of money

the level of inflation or deflation

the presence of a budget deficit or surplus

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