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WorksheetsEcon. Unit 2 - GDP - Macroeconomics
Total questions: 22
Worksheet time: 11mins
Which of the following is responsible for fiscal policy?
the Federal Bureau of Investigation
the Federal Reserve
Congress & the President
the Federal Reserve banks
Which fiscal policy tool would be used if the economy were in a trough?
increase the money supply
increase individual tax rate
decrease the money supply
increase government spending
Which monetary policy tool would speed up the economy?
increasing reserve requirement to decrease the money supply
decreasing income taxes
increasing government spending
decreasing interest paid on reserves to increase the money supply
Which monetary policy tool would be expansionary?
decrease reserve requirement to increse the money supply
increase discount rate to decrease the money supply
increase interest paid on reserves to decrease the money supply
selling bonds via open market operations to decrease the money supply
How are monetary policy and fiscal policy similar?
They are both done by the President.
They are both done by the Fed.
They are both used to keep the economy stable.
They both use four tools.
The Federal Reserve sells bonds to decrease the money supply. What type of policy is this?
Contractionary Fiscal Policy
Expansionary Fiscal Policy
Contractionary Monetary Policy
Expansionary Monetary Policy
GDP declines during a(an)
peak
contraction
expansion
Economic recovery begins-
above the trend line
at the end of a recession (trough)
at the "boom" period
GDP will begin to decline at-
the peak.
the trough.
the contractionary phase.
Inflation measures...
the value of all final goods and services produced
an increase in the general price level
the percentage of people looking for work that can't find it
the economic freedom an economy offers
Unemployment measures...
the value of all final goods and services produced
an increase in the general price level
the percentage of people looking for work that can't find it
the economic freedom an economy offers
Which of the following is a peak?
A
B
C
D
Which of the following is a recession, or contraction?
A
B
C
D
Which of the following is a trough?
A
B
C
D
Which of the following is an expansion, or recovery?
A
B
C
D
If a news headline says, "Finally!!! 2 straight months of increased jobs."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "6 straight years of growth! How much longer can the economy keep up?"
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
If a news headline says, "3 months of consecutive job losses is impacting consumer confidence."
Where on the business cycle is the current economy?
Peak
Contraction/Recession
Trough
Expansion/Growth/Recovery
Which of the following statements would be classified as “full employment’?
Everyone who wants to work has a job
Approximately 95% of people have a job
People who have been hunting for a job for a long time
Everyone who wants to work have full time jobs
Refers to an increase in the general price level associated with an increase in the cost of production.
Supply Inflation
Cost Push Inflation
Imported Inflation
Demand Pull Inflation
_______ occurs when people are in between jobs, entering and reentering the labor force.
Cyclical unemployment
Technological unemployment
Frictional unemployment
Seasonal unemployment
Unemployment Rate =
population / # of unemployed X 100
# of unemployed / # in the civilian labor force X 100
# in the civilian labor force / # of unemployed X 100
