Macroeconomics Review

Which type of GDP accounts for inflation?

• Nominal GDP

• Real GDP

If I buy a house in 2020 that was built in 2020, would the 2020 GDP increase?

• Yes

• No

The Federal Reserve determines ______________ policy

In order to control inflation, the FED could ____________ the money supply.

• Increase

• Decrease

The federal government tries to maintain price stability by limiting _____________.

• Inflation

• Money Supply

• Unemployment

• Equity

Lowering the reserve requirement (amount of capital a bank must have on hand) is an example of ____________ policy.

• Monetary

• Fiscal

When the FED raises interest rates, banks will _________________ interest rates on loans.

• Increase

• Decrease

In order for a type of money to be used, it must be __________________ wherever you want to use it.

• Accepted as Payment

• Portable

• Durable

• Divisible

In the business cycle, a ___________________ is when there is not enough money in circulation.

Movement within the workforce is known as ____________________ unemployment.

• Frictional

• Stuctural

• Seasonal

• Cyclical