MACROeconomics 15 Minute Review

Mr. Clifford provides a comprehensive review of macroeconomics, covering key concepts such as scarcity, economic systems, GDP, aggregate demand and supply, fiscal and monetary policy, money and banking, and trade and foreign exchange. The video explains the circular flow model, types of unemployment, inflation, the business cycle, and the Phillips curve. It also discusses fiscal and monetary policies, including their effects on the economy, and explores the balance of payments and currency appreciation and depreciation.

What does a bowed-out production possibilities curve indicate?

• No opportunity cost

• Constant opportunity cost

• Decreasing opportunity cost

• Increasing opportunity cost

In a command economy, who owns the resources?

• Individuals

• Corporations

• The government

• Non-profit organizations

What is GDP composed of?

• C, I, G, Xn

• M, N, O, P

• W, X, Y, Z

• A, B, C, D

Which type of unemployment is considered part of the natural rate?

• Cyclical

• Frictional

• Seasonal

• Technological

What does the Phillips curve illustrate?

• The relationship between inflation and unemployment

• The relationship between supply and demand

• The relationship between GDP and inflation

• The relationship between interest rates and GDP

What is the effect of expansionary fiscal policy?

• Decreases aggregate demand

• Increases taxes

• Increases aggregate demand

• Decreases government spending

What is the primary tool used in open market operations?

• Interest rates

• Reserve requirements

• Taxes

• Bonds

What happens when the Fed buys bonds?

• Inflation decreases

• Interest rates increase

• Money supply increases

• Money supply decreases

What is the balance of payments composed of?

• Current account and capital account

• Export account and import account

• Trade account and services account

• Goods account and financial account

What effect does currency appreciation have on net exports?

• Increases net exports

• Decreases net exports

• Increases imports

• Has no effect on net exports