Macroeconomics

When inflation is high the _______________of the dollar decreases

• cost value

• purchasing power

• importance

• validity

Which of the following studies economics as a whole?

• Microeconomics

• Macroeconomics

• Both Microeconomics & Macroeconomics

What is GDP?

• Gross Domestic Product

• Get Duties Prior

• Gross Department Power

• Gross Duties Peer

It is the study of the nations economy as a whole.

• Microeconomics

• National economy

• National output

• Macroeconomics

What would cause AD to decrease?

• an increase in taxes

• a decrease taxes

• an increase in government spending

• keeping government spending constant

The belief the government must manage the economy by spending more money when in a recession and cutting spending when there is inflation.

• Keynesian Economics

• Supply-Side Economics

MPS is 20%. Government spends $1 million. How does this affect AD?

• Increase by $5 million

• Decrease by 20

• Decrease by $5 million

• Increase by $4 million

The expenditure by households on consumption goods and services.

• Business Cycle

• Exports of goods and services

• Consumption expenditure

• Government expenditure on goods and services

The federal government's overall approach to spending and taxes is called

• Physical Policy

• Fiscal Policy

• Money

• Monetary Policy

Match the following formulas to their correct term

• 1/MPS

• Tax Multiplier

• 1/reserve requirement

• Expenditure (spending) Multiplier

• MPC/MPS

• Change in prices

• (New-old)/Old X 100

• Money Multiplier