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Macro Unit Review #2

Total questions: 16

Worksheet time: 9mins

Name
Class
Date
1.

Choose all that apply

Which of the following are characteristics associated with letter E?

a)

Rising unemployment

b)

Rising employment

c)

Highest levels of unemployment

d)

Economic growth

e)

Inflation

2.

Choose all that apply

Which of the following are characteristics associated with letter E?

a)

Rising unemployment

b)

Rising employment

c)

Highest levels of unemployment

d)

Economic growth

e)

Inflation

3.

If The FED raised the required reserve ratio, it would

a)

limit money supply

b)

increase money supply

c)

money supply remain unchanged

4.

If The FED lower the required reserve ratio, it would

a)

limit money supply

b)

increase money supply

c)

money supply remain unchanged

5.

During inflationary period, the Federal Reserve central bank will use

a)

expansionary monetary policy

b)

contractionary monetary policy

c)

supply side policy

6.

During recession, Federal Reserve bank will use

a)

expansionary monetary policy

b)

contractionary monetary policy

c)

supply side policy

7.
The use of taxes and government spending to affect the economy
a)
Monetary Policy
b)
Fiscal Policy
c)
Contractionary Policy
d)
Expansionary Policy
8.

A budget deficit is when...

a)

...spending is greater than revenue.

b)

...spending is less than revenue.

c)

...the budget has been incorrectly calculated.

d)

...revenue is greater than spending.

9.
Taxing & spending to help the economy grow is referred to as
a)
expansionary policy
b)
monetary policy
c)
contractionary policy
d)
budget deficit
10.
If the unemployment rate is rising and GDP is falling, the fiscal policy action that the federal government should MOST likely follow is 
a)
decreasing taxes.
b)
decreasing spending.
c)
decreasing the money supply.
d)
decreasing the reserve requirement.
11.

The Consumer Price Index (CPI) measures___________.

a)

inflation

b)

GDP

c)

unemployment

12.

The nations GDP goes through periods or ups and downs called the ______________.

a)

Business cycle

b)

GDP

c)

Inflation

13.

When the GDP and Jobs are down for 6 straight months, the economy is in a__________.

a)

recession

b)

depression

c)

expansion

14.

Select all that apply.

According to the graph, which of the following statements is true?

a)

Median household incomes are growing just as fast as the U.S. gross national product

b)

The United States is experiencing economic growth from 1985 to 2015

c)

Median household incomes are not growing as fast as the U.S. gross national product

d)

Unemployment is a problem in the United States

15.

When the economy is working properly, what is the natural (full employment) unemployment rate?

a)

0 to 3 percent

b)

4 to 6 percent

c)

8 to 10 percent

d)

10 - 12 percent

16.

What is the difference between a recession and a depression?

a)

A recession is a period of economic growth while a depression is a period of economic contraction.

b)

A recession is more severe than a depression and lasts longer.

c)

A depression is a particularly deep recession with high levels of unemployment.

d)

Unlike a recession, a depression includes high levels of inflation