WorksheetsEcon Terms + Fiscal Policy + Reserve Requirements
Total questions: 22
Worksheet time: 11mins
What is the following?
GDP is growing. The unemployment rate is going down.
Expansion
Contraction
What is the following?
A majority of businesses are selling more products. Due to increased profits, they are are hiring more workers. Consumers are spending more money.
Expansion
Contraction
What POLICY should the government use in the following scenario?
"Inflation is rising"
Contractionary
Expansionary
What POLICY should the government use in the following scenario?
"The economy is in a recession"
Expansionary
Contractionary
What POLICY should the government use in the following scenario?
"GDP is falling. The Unemployment Rate is going up"
Expansionary
Contractionary
What POLICY should the government use in the following scenario?
"the prices for all goods and services are increasing"
Expansionary
Contractionary
What POLICY should the government use in the following scenario?
"Consumer Demand is falling. People are spending less money in the economy..."
Expansionary
Contractionary
A sustained increase in the general level of prices for goods and services is called...
Deflation
Inflation
GDP
Expansionary Policy
The dollar value of all goods, services, and structures produced in a country’s borders during a one-year period.
GDP
Contraction
Unemployment
Inflation
A recession is another word for a...
Contraction
Expansion
Inflation
GDP
During an expansion, what is happening to consumer demand?
It is rising
It is falling
Another word for Expansion would be...
recovery
recession
contraction
inflation
Expansionary Policies tend to...
Increase Consumer Demand
Stop inflation
Decrease GDP
Contractionary Policy tends to...
Create more unemployment
Create more inflation
Increase GDP
Which of the following will most likely create an “expansion” to occur in the economy.
cutting taxes
contractionary fiscal policy
cutting government spending
increasing the discount rate
Which of the following will most likely create a “contraction” to occur in the economy.
cutting government spending
expansionary fiscal policy
lowering the discount rate
the Federal Reserve buying bonds
Fiscal policy aims to influence the economic activity through the use of
money supply and interest rate.
exchange rate.
government spending and taxation.
direct and indirect taxation.
Which would encourage economic growth?
raising reserve requirements
lowering reserve requirements?
Which performs "fiscal policy"?
The Federal Reserve Bank
The President and Congress
Using Fiscal Policy, what is one way to increase the level of demand in the economy?
Raise Taxes
Cut Government Spending
Cut Taxes
Lower Reserve Requirements
