Review - Unit 6 - Day 62

Who is in charge of fiscal policy?

• Government
• Federal Reserve

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.

If the Federal Reserve wanted to stimulate the economy (make it grow), they might

• Sell Treasury bonds
• Buy Treasury bonds
• Spend more money
• Spend less money

Which of the following scenarios would cause the nation’s money supply to increase?

• Decreasing government spending
• Lowering interest rates
• Raising interest rates
• Selling bonds to investors

Fiscal Policy is concerned with

• Government Spending and taxation
• Consumer spending and productivity
• Government spending and the money supply
• Taxation and inflation

Which is NOT one of government's role in the economy?

• Protecting property rights

• Maintaining competition

• Protecting consumers, savers, and investors

• Protecting monopolistic corporations

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

• Deflation
• Monetary policy
• Stagnation
• Inflation

Which phase of the Business Cycle includes the economy slowing down?

• Prosperity
• Recession
• Depression
• Recovery

Which letter represents the Contractionary (Recession) Phase?

• A
• B
• C
• D

Where on the business cycle would you find the highest unemployment?

• A
• B
• C
• D