Macroeconomics Review

The central bank of the United States that sets policies designed to control the money supply is called the

• congressional bank

• Bank of the United States of America

• Federal Reserve

• Bank of Governors

After much debate in Congress, the House and Senate finally pass a bill calling for a 1 percent tax decrease and a cut in federal funding. This is an example of

• fiscal policy

• monetary policy

• open market operations

• tight money policy

GDP, unemployment and the national debt are all?

• signs the economy is peaking

• signs the economy is in contraction

• economic indicators used to determine the state of the economy

• elements of monetary policy

Fiscal policy is created and implemented by

• Congress and the President

• The Federal Reserve

Cars, TVs, computers belong in which part of the GDP formula?
GDP = C+I+G+(X-M)

• Consumption Expenditures
• Investment Expenditures
• Government Expenditures
• Net Imports

What does X represent in calculating net imports?
X-M

• Imports
• Exports
• Expenditures
• None of the Above

GDP is calculated by

• adding up the cost of goods used in producing the item

• subtracting all costs from total revenue

• adding consumption + investment + government spending + (exports sold - imports bought)

What does Per Capita Mean?

• Per Household
• Per Object
• Per Worker
• Per Person

GDP per capita is found by dividing a country's GDP by it's

• population.

• average birth rates.

• number of households.

Which of the following studies economics as a whole?

• Microeconomics

• Macroeconomics

• Both Microeconomics & Macroeconomics