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Econ Big Idea 6
Who enacts EMP?
What is an example of CFP?
Econ Big Idea 6
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Answers
1
What is an example of CFP?
Keeping taxes the same
Taxing the taxes
Raising taxes
Cutting taxes
2
Who enacts EMP?
The Fed
The Government
Secretary of the Treasury
The President
3
What is another word one can use for GDP?
Inflation
Unemployment
Spending
Don't pick this one
4
Can a Korean company's products, that has a factory in New Mexico, count towards US GDP?
Maybe
I don't know (this is wrong even if you don't know)
No
Yes
5
What are inflationary dollars?
Dollars that get bigger
Dollars that have increased in value
Dollars that have decreased purchasing power
Dollars that have increased purchasing power
6
In the US, net exports will...
add to GDP
subtract from GDP
not change GDP
double GDP
7
What is the discount rate?
The rate the government charges it's citizens
The rate private banks charge their customers
The rate that the government charges The Fed
The rate that The Fed charges their member banks
8
When the CPI rises, overall households have...
To spend more money to have the same standard of living
Less money to spend to not maintain the same standard of living
Less money to spend to maintain the same standard of living
More money to spend to not maintain the same standard of living
9
What we call a period of contractionary economic performance that last several months
Recession
Depression
Expansion
Recovery
10
When in the business cycle does a recession begin?
Peak
Trough
Expansion
Contraction
11
What does inflation affect the MOST?
Purchasing Power
Unemployment
Taxes
Dividends
12
Real GDP is GDP adjusted for what?
Nominal GDP
Inflation
Unemployment
Stagflation
13
What does The Fed do?
Borrows money
Increase their spending
Controls the money supply
Raise taxes
14
What is the term used to describe the GDP per capita of a nations citizens?
Wealth management
Standard of living
Standard of wealth
Real GDP
15
Deficit spending increases what?
The national debt
Consumer price indices
Open market solutions
GDP
16
Which type of unemployment is mostly associated with the business cycle?
Frictional unemployment
Cyclical unemployment
Seasonal unemployment
Structural unemployment
17
What is the biggest sector of GDP?
Investment
Consumer
Government
Net Exports
18
What is the main difference between an economic recession and an economic depression?
Severely high rates of unemployment
Severely low rates of inflation
Severely high rates of employment
Severely low rates of unemployment
19
How many goods and services does the CPI use to measure GDP
90,000
99,000
9,000
All goods and services
20
Who is hurt (losers) in a contract during inflationary periods?
Firms and customers
Nobody, everybody is helped
Customers
Firms
21
What is the purpose of CMP?
To decrease spending
To get out of a recession
To increase spending
To speed up the economy
22
What kind of unemployment do automated jobs fall under?
Cyclical unemployment
Structural unemployment
Seasonal unemployment
Frictional unemployment
23
What tools does The Federal Reserve use attempt to influence economic growth/expansion
Open market operations
Increasing subsidies
Manipulating market efficiencies
Cutting taxes
24
Why will we never have 0% unemployment?
I couldn't think of another answer to put
We don't want to have 0% unemployment
There isn't a good answer to this question
People quit their jobs everyday (Johnny Paycheck), frictional unemployment
25
Why would the government want people to spend less money?
Enact EFP
Increase GDP
Decrease inflation
Decrease unemployment
