Unit 9 Study Guide Economics & Personal Finance

Identify the phases of the Business Cycle below using the diagram above. Which phase does point A represent?

• Peak

• Trough

• Expansion

• Contraction

Identify the phases of the Business Cycle below using the diagram above. Which phase does point B represent?

• Peak

• Trough

• Expansion

• Contraction

Identify the phases of the Business Cycle below using the diagram above. Which phase does point C represent?

• Peak

• Trough

• Expansion

• Contraction

Identify the phases of the Business Cycle below using the diagram above. Which phase does point D represent?

• Peak

• Trough

• Expansion

• Contraction

Part 3 Questions: How the government conduct revenue collection (taxation) and spending - what type of policy is this?

• Monetary policy

• Fiscal policy

• Trade policy

• Foreign policy

Which answer best describes when the Federal Reserve influences interest rates and the money supply?

• Monetary policy

• Fiscal policy

• Reserve requirements

• Discount rate

GDP, CPI, per capita gross national product, and the national debt are economic indicators that help economists determine what?

• Economic indicators of the health of a country

• The regular weather patterns of a country

• The population growth rate

• The literacy rate

The cycle that involves the ups and downs of the economy is called what?

• Business cycle

• Water cycle

• Carbon cycle

• Life cycle

What is an example of contractionary monetary policy?

• Raising interest rates

• Lowering interest rates

• Increasing government spending

• Decrease in taxes

Classical economists believe the government’s role in the economy should be what?

• Active and interventionist

• Minimal and limited

• Controlling all industries

• Focused on social welfare