Econ Unit 3 Macroeconomics

Front

Net exports is a measure of

Back

exports - imports

Front

Phase of the business cycle when it could be said that Real GDP is at its highest point, the economy is close to full employment, and the price level is increasing.

Back

peak

Front

The base year of this chart is?

Back

1900

Front

What happened to the CPI between 1900 and 2000?

Back

doubled

Front

Why is the Federal Reserve known as the “banker’s bank”?

Back

the Fed can use the discount rate to loan money directly to banks

Front

Which of the following would most likely be implemented to encourage consumer spending for major purchases? Options: a policy to restrict bank lending, a policy to reduce interest rates, a plan to increase state sales tax rates, a plan for the Fed to sell bonds

Back

a policy to reduce interest rates

Front

Which of the following would most likely be a part of a nation’s fiscal policy aimed at slowing the growth of the United States economy? Options: increasing government spending, lower banking regulations, higher income tax rates, lowering sales tax rates

Back

higher income tax rates

Front

Which the following is one of the two goals of an expansionary fiscal policy? Options: Increase unemployment, Increase national debt, Increase Real GDP, Increase government regulation/control over the economy

Back

Increase Real GDP

Front

If Government spending decreases, which of the following occurs? Real GDP increases and price level increases, Real GDP decreases and price level increases, Real GDP increases and price level decreases, Real GDP decreases and price level decreases

Back

Real GDP decreases and price level decreases

Front

Which fiscal and monetary policy combination would MOST LIKELY cause GDP to increase and unemployment to fall? Options: Cut taxes Raise spending, Cut taxes Sell bonds, Cut taxes Decrease spending, Cut Taxes Buy bonds

Back

Cut Taxes Buy bonds