131 - Economics Policies

Which of the following describes unemployment?

• a system of production, goods and services, exchanges to satisfy wants and needs

• the total quantity of money in circulation at a point in time.

• the share of the labor force that is jobless, expressed as a percentage.

• too many dollars chasing too few goods - causes a rise in prices

Which of the following describes a recession?

• the total quantity of money in circulation at a point in time

• long-term economic downturn

• too many dollars chasing too few goods - causes a rise in prices

• a temporary economic downturn

Which of the following describes inflation?

• the (%) rate at which interest is paid by borrowers for the use of money that they borrow from a lender

• too many dollars chasing too few goods - causes a rise in prices

• the share of the labor force that is jobless, expressed as a percentage

• the total quantity of money in circulation at a point in time.

What is the Federal Reserve System?

• The system used by the president to control the economy

• A system of production, goods and services, exchanges to satisfy wants and needs

• The system used by Congress to control the economy

• The central bank of the United States

The president uses what kind of economic policy to influence the economy?

When the unemployment rate is high, what can the president do?

• Lower income taxes

• Raise interest rates

• Increase income taxes

• Limit government spending

What can the president do when unemployment is low but inflation might be on the rise?

• Lower income taxes

• Raise income taxes

• Lower interest rates

• Increase government spending

The Federal Reserve uses what kind of policy to influence the economy?

If unemployment is low but inflation is on the rise, what can the FED do?

• Raise interest rates

• Raise taxes

• Lower interest rates

• Increase government spending

The desire consumers have for goods and services.

• Inflation

• Demand

• Unemployment

• Supply