Macro Vocab Practice

What is the total value of all final goods & services produced within a country's borders in a given year called?

• Macroeconomics

• Gross Domestic Product (GDP)

• Economic Growth

• Consumer Spending

What term describes the study of economics of a nation as a whole?

• Macroeconomics

• Gross Domestic Product (GDP)

• Economic Growth

• Consumer Spending

Which type of unemployment occurs when workers are looking for or are between jobs?

• Full Employment

• Unemployment Rate

• Structural Unemployment

• Frictional Unemployment

What is a recurring pattern of growth and decline in economic activity over time known as?

• Business Cycle

• Recession

• Recovery

• Contraction

What is the measure of the value of economic output adjusted for inflation?

• Monetary Policy

• Fed Dual Mandate

• Real GDP

• Nominal GDP

Which economic indicator measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services?

• Gross Domestic Product (GDP)

• Consumer Price Index (CPI)

• Unemployment Rate

• Real GDP

What term is used to describe the decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy?

• Deflation

• Inflation

• Stagflation

• Hyperinflation

What is the name of the policy used by the government to regulate the economy through its powers of taxation and spending?

• Monetary Policy

• Fiscal Policy

• Supply-Side Economics

• Quantitative Easing

What is the term for the percentage of the labor force that is unemployed and actively looking for employment?

• Employment Rate

• Underemployment Rate

• Unemployment Rate

• Labor Force Participation Rate

What is the process by which a central bank controls the supply of money in an economy, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency?

• Fiscal Policy

• Monetary Policy

• Supply-Side Economics

• Quantitative Easing