EPF Oct Review

If a news headline says, "Finally!!! 2 straight months of increased jobs."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."

Where on the business cycle is the current economy?

• Peak

• Contraction/Recession

• Trough

• Expansion/Growth/Recovery

Which of the following is a peak?

• A

• B

• C

• D

GDP is an important economic measurement because it

• provides valuable data on unemployment rates.

• provides valuable data on inflation rates.

• measures the value of final goods and services produced by a country.

• measures only the exports of a country

What term is used to describe the percent of the labor force that does not have a job but is currently looking for one?

• Leading economic indicator

• Full employment

• Unemployment rate

• workforce

What term is used to describe an increase in the general price level?

• Deflation

• Monetary policy

• Stagnation

• Inflation

The taxing and spending policies of the president and Congress are known as

• revenue policy
• fiscal policy
• monetary policy
• recession policy

Influencing the economy by changing the reserve requirement is called:

• Fiscal policy
• Monetary policy
• Tight Money
• Easy Money

The primary role of the Federal Reserve Bank is to steer the economy by

• controlling the budget
• setting spending levels.
• controlling the money supply.
• loaning out money.

Export means

• buying goods from another country
• selling goods to another country
• only making one kind of product