Economics Unit 2 Review

Which of the following is a basic macroeconomic indicator that measures the total value of goods and services produced within a country's borders in a given time period?

• Unemployment rate

• Consumer Price Index

• Gross Domestic Product

• Interest rates

What is the main goal of monetary policy?

• To control inflation

• To reduce unemployment

• To reduce government spending

• To stabilize the stock market

Which of the following is a measure of the average change in prices of goods and services over time?

• Gross Domestic Product

• Unemployment rate

• Consumer Price Index

• Interest rates

Which of the following is a characteristic of a recession?

• High economic growth

• Low unemployment rate

• Decrease in consumer spending

• Increase in stock market prices

What is the role of fiscal policy in the economy?

• To control the money supply

• To regulate interest rates

• To manage government spending and taxation

• To regulate inflation

What is the main purpose of labor unions?

• To increase employment opportunities

• To negotiate better wages and working conditions for workers

• To regulate interest rates

• To control inflation

Which of the following is a function of the Federal Reserve?

• To regulate labor unions

• To control government spending

• To manage the money supply and interest rates

• To promote economic growth

What is the term used to describe the overall increase in the production of goods and services in an economy over time?

• Economic growth

• Business cycle

• Standard of living

• Recession

Which of the following is a measure of the average level of prices of goods and services in an economy?

• Gross Domestic Product

• Unemployment rate

• Consumer Price Index

• Interest rates

What is the main goal of fiscal policy?

• To control interest rates

• To promote economic growth

• To reduce unemployment

• To stabilize the stock market