Benchmark 2 study

Front

Who is in charge of Monetary Policy?

Back

The Federal Reserve System

Front

During a recession, the Fed should use...

Back

an expansionary policy

Front

Which of the following scenarios would cause the nation’s money supply to increase? Decreasing government spending, Lowering interest rates, Raising interest rates, Selling bonds to investors

Back

Lowering interest rates

Front

The federal government is attempting to encourage spending by consumers and businesses. A fiscal policy BEST serving this purpose would be: decreasing taxes, decreasing government spending, reducing the investment tax credit, balancing the budget.

Back

decreasing taxes

Front

What are the three economic goals of policy makers?

Back

Economic growth, low unemployment, and stable prices

Front

What is Gross Domestic Product (GDP)?

Back

The value of all final goods and services produced within a country's border in a specific period of time

Front

If one wanted to know whether there had been inflation or not, the BEST measure to observe would be the: GDP, Business cycle, CPI, National Dept

Back

CPI

Front

During a recession, which of the following is likely to occur? Options: an increase in real wages, an increase in production, an increase in the GDP growth rate, an increase in the unemployment rate

Back

an increase in the unemployment rate

Front

Farm helpers are unemployed when the cropping season is over.

Back

seasonal

Front

If a news headline says, "Finally!!! 2 straight months of increased jobs." Where on the business cycle is the current economy?

Back

Expansion/Growth/Recovery