WorksheetsQuiz 2-Macroeconomics
Total questions: 20
Worksheet time: 19mins
Select the three macroeconomic policy goals from the following list.
Keep the economy growing over time
Limit unemployment
Keep prices stable
Raise unemployment
Keep the economy shrinking over time
What measure shows how well the economy is doing over time?
Gross Domestic Product
Unemployment Rate
Inflation Rate
Which of the following is NOT included in a country's GDP?
Consumer Spending
Business Spending
Government Spending
Net Exports
Net Imports
What measure shows what percentage of the eligible workers do not have jobs?
Gross Domestic Product
Unemployment Rate
Inflation Rate
When people are in the process of looking for a job after being fired or are transitioning to a new position, this is called?
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
When people can't find a job because of a lack of demand for their skills or type of labor, this is called?
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
When people can't find a job because the economy is not doing well due to a recession, this is called?
Frictional Unemployment
Structural Unemployment
Cyclical Unemployment
In the United States, a healthy economy should have an unemployment rate of 4-6%.
True
False
What measure shows the rate at which the money supply is increasing relative to the number of people using it?
Gross Domestic Product
Unemployment Rate
Inflation Rate
An increase in the supply of money that leads to an increase in prices.
Inflation
Deflation
A decrease in the general price level of goods in services that can be negative in the long run by driving down the GDP and raising unemployment.
Inflation
Deflation
India has a higher productivity than the United States because they have more people.
True
False
During Tulip Mania, there was a surge in the price of tulip bulbs, making them worth more than their actual value which was not sustainable in the long run. This phenomenon is called a?
Boom
Bust
Bubble
Breakdown
Fiscal policy, or making laws to alter government spending or change the tax rate to influence the economy, is controlled by who?
Congress and the President
The Federal Reserve
Monetary policy, or changing the money supply to influence the economy, is controlled by who?
Congress and the President
The Federal Reserve
The economy isn't doing very well due to a recession. Lots of people have been laid off and no one is buying anything because they don't have the money. If Congress and the President want to stimulate the economy, which policy should they choose?
Raise taxes
Cut taxes
The economy seems to be doing really well. Almost everyone has a job, which is good, but it's leading to inflation. If Congress and the President want to decrease the inflation rate, which policy should they choose?
Increase Government Spending
Decrease Government Spending
The economy seems to be doing really well. Almost everyone has a job, which is good, but it's leading to inflation. If the Chair of the Federal Reserve wants to decrease the inflation rate, which policy should they choose?
Lower the Federal Funds Rate
Raise the Federal Funds Rate
The economy isn't doing very well due to a recession. Lots of people have been laid off and no one is buying anything because they don't have the money. If the Chair of the Federal Reserve wants to lower the unemployment rate, which policy should they choose?
Lower the Federal Funds Rate
Raise the Federal Funds Rate
What was responsible for the bubble that led to the 2008 Financial Crisis?
Tulips
Bad Mortgages
Bad Car Loans
Bitcoin
