Quiz 14 - 04/27/2021 - 18500

What does inflation do to your purchasing power?

• increases

• decreases

What does deflation do to your purchasing power

• increases

• decreases

What is it called when the government tries to end a recession and stimulate the economy?

• expansionary fiscal policy

• contractionary fiscal policy

• expansionary monetary policy

• contractionary monetary policy

What is it called when the government tries to control inflation and slow down the economy

• expansionary fiscal policy

• contractionary fiscal policy

• expansionary monetary policy

• contractionary monetary policy

What is it called when the Federal Reserve tries to control inflation and slow down the economy

• expansionary fiscal policy

• contractionary fiscal policy

• expansionary monetary policy

• contractionary monetary policy

What is it called when the Federal Reserve tries to end a recession and stimulate the economy?

• expansionary fiscal policy

• contractionary fiscal policy

• expansionary monetary policy

• contractionary monetary policy

Which measurement is affected by both changes in production and changes in prices?

• nominal GDP

• real GDP

Which measurement is affected only by both changes in production?

• nominal GDP

• real GDP

What two things should the government do to end a recession and stimulate the economy?

• decrease taxes

• increase taxes

• decrease government spending

• increase government spending

What two things should the government do to control inflation and slow down the economy?

• decrease taxes

• increase taxes

• decrease government spending

• increase government spending