Macro Review 1

Which rate is ideal for unemployment?

• Below 5 percent

• Below 3 percent

• 3-4 percent

• Below 6 percent

The LOWEST point of the business cycle before a recovery begins

• Peak

• Depression

• Trough

• Recovery

All of the following are on the business cycle EXCEPT

• Peak

• Trough

• Expansion

• GDP

The HIGHEST Point on the business cycle

• Peak

• Trough

• Contraction

• Recession

What is the formula for GDP?

• C + I + G + (X - M)

• C + I + G (X - M)

• C + I + G + (X + M)

• C + I + G + (M - X)

High levels of GDP indicate...

• A higher level of unemployment

• A higher standard of living

• Being on a contraction on the business cycle

• A lower standard of living

Which letter represents a Contraction/Recession?

• A

• B

• C

• D

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

• Decrease interest rates

Choose a response below based on the following prompt; "I feel very comfortable with material presented in Macroeconomics."

• Strongly Agree

• Agree

• Disagree

• Strongly Disagree