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Macroeconomics Review - Part 2 Flashcards | StudBud
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Macroeconomics Review - Part 2
Macroeconomics Review - Part 2
33 terms
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StudBud Administration
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A review for our class. Macroeconomics concepts.
Flashcards
33 cards
F
Practice quiz
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Host live
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Questions
33
Answers
1
Which policy is a fiscal policy?
Budget Surplus
Taxes
Open Market Operations
Discount Rate
2
How is aggregate demand affected when an expasionary policy is put into place?
increases
decreases
not related
stays the same
3
Which policy is a monetary policy?
Interest on Reserve
Taxes
Government Spending
Budget Deficit
4
When should the Federal Reserve sell government securities (bonds)?
When the inflation rate is too high
When aggregate supply is too high
In a depression
In a recession
5
What does the Federal Government need to do in order to fix high inflation?
Increase Discount rate
Decrease Taxes
Buy bonds
Cut Govt Spending
6
As a result of the reserve requirement rate, banks are required to
charge the same interest rate on all their loans
keep percentage of their demand deposits as reserves
pay a fraction of their interest income in taxes
expand the money supply with their reserves when requested by the FED
7
Which situation exists when tax revenues exceed government expenditures?
The Treasury prints more money
The government sells Treasury Bills
A budget surplus
A budget deficit
8
Which one of these is NOT a key economic indicator?
Unemployment
Monetary Policy
GDP
Inflation
9
How does aggregate demand shift on a graph when GDP decreases?
no affect
moves along the line
to the right
to the left
10
Which economic indicatior is going in the correct direction for an expansion phase of the business cycle?
Unemployment - increases
Inflation - decreases
GDP - decreases
Inflation - increases
11
Interest on Reserve refers to
Fiscal policy -monitors the spending habits of the government and consumers
monetary policy-interest is paid to banks on excess reserves held at Fed
monetary policy - encourages consumers to save money
Fiscal policy - Govt charges banks to keep their excess reserves
12
On the graph below, what variable is represented by the gray line?
Falling GDP
Government control and price stability.
An upward trend in prosperity over time or long term growth.
The role of the Fed.
13
Who controls Monetary Policies?
The Federal Govt
The Fed
Coach Williamson
Joe Biden
14
Which situation exists when government expenditures exceed tax revenues?
A budget surplus
The Treasury prints more money
A budget deficit
The government sells Treasury Bills
15
Which economic indicatior is going in the correct direction for a contraction phase of the business cycle?
Unemployment - decreases
Inflation - decreases
GDP - increases
Inflation - increases
16
What are the shifters of Aggregate Demand?
CPI
Open Market Operations
Reserve Requirement Ratio
C + I + G + Xn
17
This is the definition of what term: The total value of all goods and services demanded at all different price levels
Aggregate Demand
GDP
Demand
Aggregate Supply
18
What Fiscal policy needs to be put in place when our economy is overheating?
Decrease Taxes
Increase Govt Spending
increase taxes
Sell bonds
19
Which terms best describe the following definition: The Interest that the Federal Reserve charges banks to borrow money
Required Reserve Ratio
Discount Rate
Open Market Operation
Personal Taxes
20
What is the estimation of national debt between the U.S. Government and its citizens?
200 thousand
27 trillion
300 million
27 billion
21
Which policy could the government try if America was trying to get the economy to
expand
?
cut government spending
cut production of consumer goods
cut prices of consumer goods
cut taxes
22
What does the Federal Reserve need to do in order to fix high Unemployment?
Cut Govt Spending
Increase Discount rate
Buy bonds
Decrease Taxes
23
Who controls Fiscal Policies?
Grayson High School
The Federal Govt
The Federl Reserve
What is Fiscal policy?
24
How do countries accumulate debt?
the accumulation of budget surpluses
the accumulation of budget deficits
they didnt take economics in high school
they trade alot
25
What type of policy needs to be put in place when our economy is experiencing high unemployment?
Expansionary Policy
Contractionary Policy
Fun policy
Big Policy
26
What are the three parts that make up the Federal Reserve?
Board of Governors, Reserve Banks, Federal Open Market committee
Executive, Judicial, Legislative
Reserve Banks, Board of Governors, The Evil Empire
GDP, Inflation, Unemployment
27
In Macroeconomics, what do we call the
lowest point
of the Business Cycle?
a depression
a trough
an inflation
the peak
28
Read the following news clipping and select the resulting economic effect:
Aggregate demand will increase, lowering both real GDP + CPI
Both aggregate demand and aggregate supply will decrease
No change in aggregate demand and aggregate supply
Aggregate demand will decrease, lowering inflation, and lowering GDP
29
What is Aggregate Demand equal too?
GDP
Monetary Policy
Aggregate Supply
CPI
30
What phase of the business cycle shows a growing GDP?
contraction
expansion
depression
trough
31
What is the term for a "short term" contraction period?
Recession
Prosperity
Depression
Trough
32
What Monetary policy needs to be put in place when our economy is in a recession?
Increase Interest on Reserve
Increase Government Spending
Sell Bonds
Decrease Discount Rate
33
Which economic indicatior is going in the correct direction for an expansion phase of the business cycle?
Unemployment - increases
GDP - increases
Inflation - decreases
GCP - decreases
