Macroeconomics Review

What is the "full employment" rate of the United States?

• 4-6 percent
• 2-3 percent
• 10 percent
• 8-10 percent

The lowest point of output in a recession, before a recovery begins

• trade deficit
• depression
• trough
• recovery

All of the following are points on the business cycle EXCEPT

• Peaks
• Troughs
• Expansion
• GDP

The HIGHEST Point in business cycle

• Peak
• Trough
• Contraction
• Recession

What is the formula for GDP?

• C + I + G + (X-M)
• C + I + G / (X-M)
• C + I + G + (population)
• C + I + G + (M-X)

High levels of GDP per capita indicate...

• Higher levels of happiness 
• Higher standard of living
• Equal levels of wealth 
• Self-sufficient communities

Which letter represents the Contractionary (Recession) Phase?

• A
• B
• C
• D

Where on the business cycle would you find the highest unemployment?

• A
• B
• C
• D

What can the government do to give a boost to a slowing economy? 

• raise taxes
• lower taxes
• increase interest rates

Who is most likely to be hurt by inflation?

• someone who borrowed money
• a retiree on a fixed income
• a business owner
• the U.S. government