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WorksheetsMacroeconomics Review
Total questions: 20
Worksheet time: 22mins
Name
Class
Date
1.
What is the "full employment" rate of the United States?
a)
4-6 percent
b)
2-3 percent
c)
10 percent
d)
8-10 percent
2.
The lowest point of output in a recession, before a recovery begins
a)
trade deficit
b)
depression
c)
trough
d)
recovery
3.
All of the following are points on the business cycle EXCEPT
a)
Peaks
b)
Troughs
c)
Expansion
d)
GDP
4.
The HIGHEST Point in business cycle
a)
Peak
b)
Trough
c)
Contraction
d)
Recession
5.
What is the formula for GDP?
a)
C + I + G + (X-M)
b)
C + I + G / (X-M)
c)
C + I + G + (population)
d)
C + I + G + (M-X)
6.
High levels of GDP per capita indicate...
a)
Higher levels of happiness
b)
Higher standard of living
c)
Equal levels of wealth
d)
Self-sufficient communities
7.
Which letter represents the Contractionary (Recession) Phase?
a)
A
b)
B
c)
C
d)
D
8.
Where on the business cycle would you find the highest unemployment?
a)
A
b)
B
c)
C
d)
D
9.
What can the government do to give a boost to a slowing economy?
a)
raise taxes
b)
lower taxes
c)
increase interest rates
10.
Who is most likely to be hurt by inflation?
a)
someone who borrowed money
b)
a retiree on a fixed income
c)
a business owner
d)
the U.S. government
11.
What the definition of deflation?
a)
decrease in the average price of goods and services
b)
occurs when the price of goods and services rise
c)
increase in prices
d)
I don't know
12.
What is inflation?
a)
rise in all prices
b)
rise in most prices
c)
rise in some prices
d)
rise in general prices
13.
What type of unemployment did people experience during the Great Depression?
a)
Seasonal
b)
Structural/Technological
c)
Cyclical
d)
Frictional
14.
What causes cost push inflation
a)
An increase in demand for goods and services
b)
An increase in supply
c)
A rise in production costs passed on to consumers
d)
A fall in the price of imports
15.
What causes demand pull inflation?
a)
rise in price due to a decrease in supply
b)
a rise in price level due to an increase in consumption
c)
a rise in price due to an increase in the cost of production
d)
a decrease in price due to a decrease in supply
16.
What type of inflation is good for the economy?
a)
Hyperinflation
b)
Stagflation
c)
Creeping Inflation
d)
Deflation
17.
A literary editor leaves her job in New York to look for a new job in San Francisco.
a)
Frictional
b)
Cyclical
c)
Structural
d)
Not counted
18.
An unemployed college graduate is looking for his first job.
a)
Frictional
b)
Cyclical
c)
Structural
d)
Not counted
19.
Slumping sales lead to the cashier being laid off.
a)
Frictional
b)
Cyclical
c)
Structural
d)
Not counted
20.
Seth is laid off from work because he is a life guard at the local water park. He is experiencing what kind of unemployment?
a)
Structural
b)
Seasonal
c)
Frictional
d)
Cyclical
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