Kaleya Sullivan macroeconomics

The total value of all goods and services produced within a country in a year is called

• CPI

• GDP

• inflation

• Real income

Which of the following is NOT a component of GDP?

• Consumption

• Investment

• Government

• Savings

Inflation is best defined as

• A fall in wages

• A general increase in prices

• An increase in exports

• A decrease in GDP

The unemployment rate measures

• Everyone without a job

• Part time workers

• % of labor force unemployed and looking

• People who quit looking

The Federal Reserve mainly

• Makes laws

• Controls money supply and interest rates

• Prints money for states

• Lowers taxes

When the Fed raises interest rates, spending usually

• Increases

• Stays the same

• Doubles

• Decreases

A recession is defined as

• Rising stock prices

• Two quarters of falling GDP

• high inflation only

• Low unemployment

Real GDP adjusts for

• Exports

• Price changes

• Debt

• Interest rates

Cyclical unemployment is caused by

• Job training issues

• Economic downturns

• Seasonal work

• Workers changing jobs

Expansionary fiscal policy includes

• raising taxes

• Cutting government spending

• Cutting taxes or increasing spending

• raising interest rates