Unit 3: Macroeconomics

Front

What is studied in "macro" economics?

Back

An examination of the change in unemployment over the last ten years.

Front

Which combination of monetary tools represents an attempt to expand the money supply using easy money (expansionary) policy?

Back

Decreasing the discount rate, decreasing reserve requirements, and buying government securities

Front

What is the job of the Federal Open Market Committee?

Back

To decide to sell or buy government securities.

Front

How does the CPI provide an accurate indication of inflation within a country?

Back

The CPI measures urban household spending on a "market basket" in a calculation to see how the average prices of goods and services have changed over time.

Front

Example of a fiscal policy action used by Congress to stop a recession.

Back

Congress will increase the amount of tax deductions.

Front

Inflation-adjusted measure reflecting the value of all final goods and services produced and sold by an economy in a given year.

Back

The Real Gross Domestic Product

Front

Characteristics of inflation, lowest unemployment, and highest GDP in a business cycle.

Back

Peak

Front

Which of the following is NOT counted in the Output Expenditures Model? Options: Consumer and Business expenditures., Transfer payments from the Government., Exported capital and consumer goods., Government expenditures.

Back

Transfer payments from the Government.

Front

Which of the following is NOT considered an intermediate good? Options: Furniture , Lumber, Fiberglass, Steel

Back

Furniture

Front

What is the accepted "full" or "normal" rate of unemployment?

Back

4%