ECON 2301 SI

What comes directly after a peak in the business cycle?

• Expansion

• Trough

• Recession

• GDP Growth

What is fiscal policy?

• Policy by banks

• Policy by the FED

• Policy by economists

• Policy by the government

What is monetary policy?

• Policy by banks

• Policy by the FED

• Policy by economists

• Policy by the government

What is a consumer good?

• A good used to produce something else

• A final good ready for day-to-day use

What is a capital good?

• A good used to produce something else

• A final good ready for day-to-day use

A machine in a factory is a…

• Consumer good

• Capital good

How long does it take to classify a recession?

• 1 year

• 1 quarter

• 2 quarters

• 3 quarters

What is an example of a transfer payment?

• A firm buying a machine

• A student buying a pencil

• The government paying for welfare

• A parent paying for a babysitter

What is aggregate behavior?

• Behavior of the government

• Behavior of all households and firms together

• Behavior of all households

• Behavior of all firms

What is the main problem of economics?

• Money

• Production

• Government

• Scarcity