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Worksheets

Modules 30 - 33

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

An estimate of what the budget balance would be if real GDP were exactly equal to potential output.

a)

debt-GDP ratio

b)

cyclically adjusted budget balance

c)

government debt

d)

consumber debt

2.

The accumulation of past budget deficits, minus past budget surpluses.

a)

consumer debt

b)

debt-GDP ratio

c)

government debt

d)

cyclically adjusted budget balance

3.

The Federal Reserve's desired level for the federal funds rate; the Federal Reserve can achieve this target through open market operations.

a)

expansionary monetary policy

b)

target federal funds rate

c)

government debt

d)

money demand curve

4.

The government's debt as a percentage of GDP.

a)

cyclically adjusted budget balance

b)

debt-GDP ratio

c)

government debt

d)

money supply curve

5.

Monetary policy that increases aggregate demand.

a)

Taylor rule for monetary policy

b)

inflationary targeting

c)

expansionary monetary policy

d)

contractionary monetary policy

6.

Monetary policy that reduces aggregate demand.

a)

government debt

b)

expansionary monetary policy

c)

contractionary monetary policy

d)

Taylor rule for monetary policy

7.

Rule for setting the federal funds rate that takes into account both the inflation rate and the output gap.

a)

expansionary monetary policy

b)

Taylor rule for monetary policy

c)

contractionary monetary policy

d)

inflationary targeting

8.

When the central bank sets an explicit target for the inflation rate and sets monetary policy in order to hit that target.

a)

expansionary monetary policy

b)

inflationary targeting

c)

contractionary monetary policy

d)

money supply curve

9.

The concept that changes in the money supply have no real effects on the economy.

a)

money demand curve

b)

monetary neutrality

c)

Expansionary monetary policy

d)

money supply curve

10.

A reduction in the value of money held by the public caused by inflation.

a)

inflation rate

b)

inflation tax

c)

unemployment tax

d)

demand inflation curve

11.

Inflation caused by a significant increase in the price of an input with economy-wide importance.

a)

CPI index

b)

cost-push inflation

c)

demand pull inflation

d)

inflation tax

12.

Inflation caused by an increase in aggregate demand.

a)

inflation tax

b)

cost-push inflation

c)

demand-pull inflation

d)

money supply curve