ПМ3 Unit 2 Macroeconomics Questions

What do fiscal and monetary policies help to avoid?

• business cycles

• recessions

• quantitative easing

• aggregates

What policy is used to increase output and speed up economic growth?

• pricing policy

• expansionary fiscal policy

• contractionary fiscal policy

• quantitative policy

Which tools are used by contractionary fiscal policy?

• printing money

• raising taxes

• lowering taxes

• raising spending

What is the fiscal policy?

• managing money supply by Central banks

• managing interest rates

• charging interest on loans

• government spending and taxation

How do banks make money?

• by providing inflation

• by providing deflation

• by considering government spending

• by charging interest on loans

What is expansionary policy?

• speeding up economic growth

• controlling interest rates

• slowing down economic growth

• supporting public spending

What is contractionary policy?

• lowering taxes

• lowering spending

• raising spending

• decreasing taxes

What does the GNP estimate?

• value of separate goods

• value of separate services

• value of all goods and services

• value of taxes

When do governments dampen economic activity?

• when they worry about taxes

• when they worry about inflation

• when they worry about productivity

• when they worry about homeowners

What cannot economies naturally return to?

• debt

• demand

• policy

• equilibrium