Unit 3: Macroeconomics

Which of the following is studied in "macro" economics?

• An examination of the change in unemployment over the last ten years.

• An examination of negative externalities caused by production in the automotive industry.
• An examination of the average incomes of people with advanced degrees from CSU.
• An examination of trending prices in the housing market of Fortson and Cataula.

Which of the following combinations of monetary tools represents an attempt to expand the money supply using easy money (expansionary) policy? (SSEMA2c)

• Decreasing the discount rate, decreasing reserve requirements, and selling government securities

• Increasing the discount rate, increasing reserve requirements, and selling government securities

• Decreasing the discount rate, decreasing reserve requirements, and buying government securities

• Increasing the discount rate, decreasing reserve requirements, and buying government securities

Which of the following statements identifies the role or structure of the Federal Reserve correctly? (SSEMA2a)

• The Federal Reserve runs through fourteen district banks.
• There are nine members on the FED’s Board of Governors.
• One major tool of the Federal Reserve is the power to increase or decrease taxes.
• The job of the Federal Open Market Committee is to decide to sell or buy government securities.

How does the CPI provide an accurate indication of inflation within a country? (SSEMA1a)

• The CPI measures urban household spending on a "market basket" in a calculation to see how the average prices of goods and services have changed over time.
• The CPI measures the average change over time in the selling prices received by domestic producers for their output using start and end dates.
• The CPI involves the calculation of price changes in the purchase of luxury items to indicate inflation.
• The CPI uses a calculation to indicate how consumers spend more money on inferior goods as income rises.

Which of the following is an example of a fiscal policy action used by Congress to stop a recession? (SSEMA2)

• Congress will decrease spending.
• Congress will decrease the reserve requirement on banks.
• Congress will increase taxes.
• Congress will increase the amount of tax deductions.

_________________ is an inflation-adjusted measure that reflects the value of ALL final goods and services produced and sold by an economy in a given year.

• The Consumer Price Index
• The Real Gross Domestic Product
• The Nominal Gross Domestic Product
• The Business Cycle

At which point of the business cycle would you find the following characteristics: inflation, lowest unemployment, and the highestGDP.

• 1
• 2
• 3
• 4

Which of the following is NOT counted in the Output Expenditures Model?

• Consumer and Business expenditures.
• Transfer payments from the Government.

• Exported capital and consumer goods.
• Government expenditures.

Which of the following is NOT considered an intermediate good?

• Furniture

• Lumber

• Fiberglass

• Steel

What is the accepted "full" or "normal" rate of unemployment?

• 1%
• 4%
• 8%
• 12%