MACRO TEST - [KFXQZDLWXX]

Which factor in the calculation of GDP would cause economic growth?

• decrease in exports

• decrease in imports

• decrease in investment

• decrease in consumer spending

• decrease in government spending

Milford has a job as a ski instructor at a resort in Vermont. He does not have a job during the summer months. What type of unemployment is Milford experiencing?

• causal unemployment

• cyclical unemployment

• seasonal unemployment

• structural unemployment

Ned is a typewriter repairman. As typewriters are being replaced by computers Ned finds less and less work. What kind of unemployment is Ned experiencing?

• Cyclical unemployment

• Frictional unemployment

• Structural unemployment

• Seasonal unemployment

What kind of unemployment is Joe experiencing?

• cyclical

• frictional

• structural

• technological

Which of these individuals is classified as unemployed?

• a computer programmer who retired early at age 47

• a recent college graduate looking for his first job

• a laid-off factory worker who has given up looking for a new job

• a barista who works as at a coffee shop 20 hours a week but would like to increase their hours

• a 15-year-old high school student who is searching unsuccessfully for a summer job as a lifeguard

What will most likely occur during the expansionary phase of the business cycle?

• A. Real GDP rises and employment rises

• B. Inflation rises and employment falls

• C. Real GDP declines and inflation rises

• D. Real GDP falls and unemployment falls

• E. Interest rates rise and the number of bankruptcies rises

What word describes the phase of a business cycle that occurs after a trough and before a peak?

• lag

• contraction

• expansion

• recession

• consolidation

What power does the Executive Branch have over the Federal Reserve System?

• The Executive Branch can appoint members to the Federal Reserve Board.

• The Executive Branch can directly control monetary policy.

• The Executive Branch can veto decisions made by the Federal Reserve.

• The Executive Branch has no power over the Federal Reserve System.

The President is the head of the Federal Reserve Bank.

• The President is the head of the Federal Reserve Bank.

• The President appoints members of the Board of Governors.

• The Senate approves certain members of the Federal Open Market Committee.

• The Vice President works with the Federal Reserve Banks and is appointed by the Board of Governors.

How does the Federal Reserve achieve these goals?

• Raising and lowering the minimum wage

• Helping to develop the taxation policies

• Increasing and decreasing government spending

• Raising and lowering short-term interest rates

• Regulating the cost of imports