National Economy Quiz

You get your hair down once every three months at Sports Clips. Where does it count in GDP?

• G
• C
• I
• N-X
• Doesn't count at all.

Your company bought plastic for water bottles. Where does it count in GDP?

• G
• I
• N-X
• Doesn't count at all.
• C

Marsha receives a check from social security. Where does it count in GDP?

• G
• C
• I
• N-X
• Doesn't count at all.

The State of Michigan hires 10 new teachers. Where does it count in GDP?

• G
• C
• I
• N-X
• Doesn't count at all.

General Motors buys two new machines to help attach car doors. Where does it count in GDP?

• G
• C
• I
• N-X
• Doesn't count at all.

Which the following makes fiscal policy limited in how effective it is?

• It's hard to decide what spending levels to change.
• The President can spend money however they want.
• Money can be printed at will.
• The Supreme Court may rule changes as unconsitutional.

Which of the following is a part of monetary policy?

• Open Market Operations
• Taxes
• Government Spending
• Opening a new business

This type of policy is designed to help during times of high inflation

• Expansionary Fiscal Policy
• Contractionary Fiscal Policy
• Contractionary Monetary Policy
• Laissez-faire

Which type of policy is the Federal Reserve using when they raise interest rates?

• Expansionary Fiscal Policy
• Contractionary Fiscal Policy
• Contractionary Monetary Policy
• Expansionary Monetary Policy

Which type of policy is the Federal Reserve using when they lower the reserve requirements for banks?

• Expansionary Fiscal Policy
• Contractionary Fiscal Policy
• Contractionary Monetary Policy
• Expansionary Monetary Policy