Econ Final Review

Macroeconomics is a study of ___________________.

[Makroekonomi adalah kajian tentang ______________.]

• A. The behavior of individual firms

• B. The entire economy

• C. General price level

• D. Government units

The​ ​Consumer​ ​Price​ ​Index​ ​(CPI)​ ​can​ ​be​ ​defined​ ​as

• The​ ​market​ ​value​ ​of​ ​all​ ​final​ ​goods​ ​and​ ​services

• A​ ​measure​ ​of​ ​inflation​ ​based​ ​on​ ​the​ ​cost​ ​of​ ​a​ ​fixed​ ​“market​ ​basket”

Inflation is measured by...

• Consumer Price Index (CPI).
• Gross National Product (GNP).
• Gross Domestic Product (GDP).
• Securities & Exchange Commission (SEC).

A pair of shoes that costs $80 last month costs $100 this month. Which of the following BEST describes this economic condition?

• inflation

• recession

The central bank in the USA that regulates the monetary system

• The Fed
• FDIC

The percentage of a deposit that a bank must hold on to is called the ______.

• Reserve Requirement

• Credit

When a bank makes a loan of $1,000, then

• the money supply increases by $1,000

• the money supply decreases by $1,000

• nothing

• the bank owes the FED $1,000

All of the following are points on the business cycle EXCEPT

• Peaks
• Troughs
• Expansion
• GDP

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

• A
• B
• C
• D

What can the government do to give a boost to a slowing economy? 

• raise taxes
• lower taxes
• increase interest rates