The largest sector of the macroeconomy is the

Gross domestic product after adjustments for inflation is known as

A U.S. business buys new computers for its office workers from a U.S. computer manufacturer. The value of the transaction would be included in which category in the graph?

GDP = C + I + G + (X-M)

In this model, the “(X-M)” represents the

The business cycle since World War II has been characterized by

Unemployment that is directly related to swings in the business cycle is

Inflation in excess of 500 percent per year is called

A statistical series used to measure price changes for a representative sample of frequently used household items is called the

Changes in technology and changes in consumer tastes can cause

The first step to take in measuring inflation is to

a.

The situation of workers between jobs is called

For all the recent talk of cutting taxes, Congress rarely cuts them when the economy is growing robustly, as it is now, and unemployment is low. The worry among economists is that the extra money in people’s pockets may make an already strong economy too strong, finally stoking inflation after a long period of relatively stable prices. (Source: The New York Times, July 14, 1999.)

The passage describes rising inflation as a possible result of

Which consumer category in the table experienced the greatest inflation between 1999 and 2001?

Based on the table, in which category could consumers buy more with their money in 2001 than they could in 1999?

In the table, what does the figure for the year 2000 say about the average price of goods and services in that year?

Which letter on the graph represents a contraction in the business cycle?

Which letter on the graph represents a trough in the business cycle?

A booming economy. Record-low unemployment. A blizzard of pink slips [a note stating that a person has been fired].

What’s wrong with this picture? The fact is, even in the best of times hundreds of thousands of people lose their jobs through no fault of their own.... You might not get any advance warning, so don’t be caught off guard. Have an up-to-date resume and networking system.... You want to be able to launch your job search soon after you get the bad news.

Source: Kiplinger’s Personal Finance Magazine, September 1998.

What type of unemployment does this passage describe?

For the year shown in the table, suppose that 130 million people were in the labor force. How many people were unemployed?

Money loses its value when it

The FDIC was established to

The Federal Reserve

Which group on the Federal Reserve organization chart decides whether to raise or lower interest rates?

What dollar amount should appear in place of the letter P in the table?

Like a driver applying a quick tap of the brakes, the Federal Reserve yesterday raised the cost of borrowing to keep the U.S. economy from running ahead too fast. As a result, consumers can expect to pay a little more when buying homes, cars, and other big-ticket items, as well as when carrying credit-card balances.

Source: The Columbus Dispatch, July 1, 1999

Why will the Fed’s action in the passage cause the result described?

Decreasing GDP for three consecutive quarters is the economic measure for a

Tight money policy exercised by The Fed is most directly related to its use of which of the following monetary tools

In an attempt to slow inflation which of the following would the US Congress and President enact

Which of the following is NOT one of the occurrences historically used to bring the economy out of a depression

The US Bureau of Labor Statistics released their report listing the current unemployment rate at 4.37%

Based on the report the US is