Macroecon

GDP is a measure of

• the price level of goods and services sold.

• total spending by federal, state, and local governments

• the quantity of goods and services produced by private businesses.

• the final market value of all goods and services produced by a nation.

What is not a component of GDP spending?

• Consumption

• Investment

• Unemployment

• Exports

Cashiers are being replaced by computer programs. A cashier that loses his or her job to a computer would fit which type of unemployment?

• Cyclical

• frictional

• structural

• seasonal

An economy will face periods of high unemployment whenever

• business competition is intense

• exports exceed imports

• real GDP is significantly below potential output

• there is a shortage of unskilled labor

What are the phases of the business cycle?

• expansion, peak, contraction

• expansion, recovery, peak

• contraction, expansion, peak

• recession, peak, expansion

What could cause an increase in aggregate demand curve?

• Increased taxes and a decrease in spending by the government

• Decreased taxes and a confident and optimistic economy

• Policies unfavorable to businesses such as higher regulation and increased interest rates

• Higher price levels and decreased unemployment

What are the main tools of fiscal policy?

• Taxes and interest rates

• Taxes and government spending

• Open markets, reserve requirements, and the discount rate

• Classic Economics

Keynesian fiscal policy attempts to reduce unemployment by

• raising taxes, lowering govt. spending

• raising taxes, raising govt. spending

• lowering taxes, lowering govt. spending

• lowering taxes, raising govt. spending

A government budget deficit exists when which occurs?

• government spending exceeds tax revenue

• government spending has increased

• the national debt decreases

• government tax revenues exceed spending

What would be considered commodity money

• a $20 bill

• a check from a checkbook

• a debit card

• a bar of silver