Edementum Economics - U3 - L3

Which of the following is not one of the economic functions of governments?

• Maintaining competition

• Providing public goods and services

• Managing imports and exports

• Stabilizing the economy

  (a)   occurs when anyone who is able and willing to work has a job. (HINT: two words)

True or False: Full employment means that everyone in a society is employed

• True

• False

Which type of unemployment is caused by changes in the economy? Example: a prolonged drop in GDP

• structural unemployment

• cyclical unemployment

• frictional unemployment

• GDP-based unemployment

(a)   policy refers to actions taken by the federal government to influence the economy

The government increases spending in order to stimulate the economy during a recession. This is an example of...

• contractionary monetary policy

• expansionary monetary policy

• contractionary fiscal policy

• expansionary fiscal policy

The federal government increases taxes in reduce consumer spending and tame inflation. This is an example of...

• contractionary monetary policy

• expansionary monetary policy

• contractionary fiscal policy

• expansionary fiscal policy