test3

Which of the following is a macroeconomic goal of the United States?

• Increasing deflation

• Preventing all frictional unemployment

• Decreasing real GDP

• Limiting inflation

Which is the best measure of economic growth in a country? 

• Unemployment rate 

• Real GDP 

• Inflation rate 

• Nominal GDP 

If there is an increase in investment spending in the United States, how would this affect the US GDP?

• Decreases GDP

• Increases GDP

• No change to GDP

• GDP would decrease temporarily, then return to normal

Which purchase would NOT help improve the GDP for this year? 

• The government buying American-made tanks 

• The sale of cars made in America to consumers in Germany 

• Apple paying an architect to design a new factory 

• A farmer purchasing a slightly-used tractor with low miles 

A recession causes the bat manufacturer Louisville Slugger to lay off 120 employees.  What type of unemployment does this represent? 

• Frictional 

• Structural 

• Seasonal  

• Cyclical 

The government begins funding training programs to teach computer repair and website design to unemployed adults.  Which kind of unemployment would such training help MOST? 

• cyclical 

• structural 

• seasonal 

• frictional 

Which situation would be harmful to banks and other lenders?

• A decrease in income taxes

• A rise in interest rates

• Decrease inflation (deflation)

• Increased inflation

Which of the following statements BEST describes the concept of the business cycle?

• The flow of funds from product markets to factor markets and the flow of resources from factor markets to product markets.

• Alternating periods of economic growth and decline.

• The flow of money from businesses to households as income.

• The flow of goods from businesses to households and labor from households to businesses.

A recession is a period of

• Decreasing GDP and national income

• Declining government spending

• Increasing government spending

• Increasing taxation

Who is more likely to benefit from a period of high inflation?

• A person with a savings account

• A person who has borrowed money

• A person with investments

• A bank that has lent money