Major Exam 5 Review

Which of the following is NOT contractionary monetary policy?

• Selling Bonds

• Raising the discount rate

• Raising the Required Reserve Ratio

• Decreasing taxes

Which point is efficient?

• B

• E

• D

• F

Which point is inefficient?

• B

• E

• D

• A

Which point is unattainable?

• B

• E

• D

• A

In the Circular Flow Model, what is the role of the household?

• households provide the factors of production

• To produce goods and services

The label for the horizontal axis in the AD/AS graph is:

• rGDP

• Price Level

• Unemployment

• Interest Rate

LRAS shows us:

• Production at full employment

• Production in 5 years

• The average price of all goods

• Inflationary expectations

This image is an example of a/an:

• Phillips Curve

• Inflationary Gap

• Recessionary Gap

This image is an example of a/an:

• Recessionary Gap

• Inflationary Gap

• Phillips Curve

• Money Market Graph

Raising government spending is an example of:

• Contractionary Fiscal Policy

• Contractionary Monetary Policy

• Expansionary Fiscal Policy

• Expansionary Monetary Policy