Econ Quiz 3: Basic Macroeconomics

What is the primary focus of macroeconomics?

• Analyzing individual businesses

• Understanding the behavior of the entire economy

• Examining consumer spending habits

• Studying microeconomic trends

What does GDP measure?

• The total population of a country

• The total value of goods and services produced in a country

• The number of jobs available in a country

• The amount of foreign investment in a country

Inflation is characterized by:

• Falling prices for goods and services

• Stable prices over time

• Prices increasing for things people buy

• No change in prices

What does the unemployment rate measure?

• The number of people who have never worked

• How many people want a job but can't find one, expressed as a percentage

• The number of people with part-time jobs

• The number of people who are retired

What is fiscal policy?

• How individuals manage their personal finances

• The government's role in controlling inflation

• How the government spends money and collects taxes to influence the economy

• The central bank's actions to control the money supply

What is the primary purpose of monetary policy?

• To regulate international trade

• To control inflation

• To set tax rates

• To build infrastructure

How is economic growth defined?

• When a country's population increases

• When the government spends more money than it collects in taxes

• When a country makes and sells more goods and services over time

• When prices for goods and services go down

Which of the following is NOT a key term in macroeconomics?

• Aggregate Demand (AD)

• Budget Deficit

• Consumer Savings

• Business Cycle

Match the following

• BusinessCycle

• How the economy goes up and down, like a roller coaster, with good times and bad times.

• Monetary Policy

• What the government decides and does to make the economy better or fairer.

• Economic Policy

• When the government spends more money than it gets in taxes for a year.

• Budget Deficit

• What the government does with taxes and spending to help the economy.

• Fiscal Policy

• What the central bank does with money and interest rates to control the economy.

A way to measure if prices are going up or down for things people buy.

• Consumer Price Index (CPI)

• Unemployment rate

• Gross Domestic Product (GDP)

• Inflation