Macroeconomics Basics

Question 1

What is the most liquid measure of the money supply?

Accepted Answer

M1

Question 2

What is the cost or price of money?

Accepted Answer

interest rate

Question 3

Hyperinflation begins with what rate of inflation?

Accepted Answer

500%

Question 4

What is it called when you have high inflation and high unemployment at the same time?

Accepted Answer

stagflation

Question 5

What is the most used tool of monetary policy?

Accepted Answer

open market operations

Question 6

Goods sold to other countries are called?

Accepted Answer

exports

Question 7

Who is this person?

Accepted Answer

Jerome Powell

Question 8

What is the most common cause of hyperinflation?

Accepted Answer

the government printing large amounts of money

Question 9

What type of unemployment occurs when you quit one job to look for another?

Accepted Answer

frictional

Question 10

If there was high unemployment what could one do with taxes to help?

Accepted Answer

lower them

Question 11

What type of inflation is caused by supply shock of some key input to production?

Accepted Answer

cost push

Question 12

During what phase of the business cycle could demand pull inflation begin to occur?

Accepted Answer

expansionary

Question 13

Which Fed district is Iowa in?

Accepted Answer

7

Question 14

What interest rate does the Fed use as a target rate?

Accepted Answer

federal funds rate

Question 15

What are the two tools of fiscal policy?

Accepted Answer

taxes and government spending

Question 16

What type of unemployment do we hope to avoid most?

Accepted Answer

cyclical

Question 17

What is the name of the interest rate that the Fed charges for loans to banks?

Accepted Answer

discount rate

Question 18

Which of the following would not be a form of fiscal policy?

Accepted Answer

lower the discount rate

Question 19

If the word "real" is used in economics to describe something it means what?

Accepted Answer

it has been adjusted for inflation

Question 20

What gives money its value?

Accepted Answer

government decree and acceptance

Question 21

Name the two types of inflation.

Accepted Answer

cost push and demand pull

Question 22

What does the Fed have for an inflation target?

Accepted Answer

2%

Question 23

In order to be considered unemployed one must be out of work and ?

Accepted Answer

actively looking for work

Question 24

In what year was the Fed created?

Accepted Answer

1913

Question 25

What is it called when imports exceed exports?

Accepted Answer

trade deficit

Question 26

If a machine takes one's job what kind of unemployment is that?

Accepted Answer

structural

Question 27

Which of the following is not a function of money?

Accepted Answer

statement of value

Question 28

What is the most common measure of inflation?

Accepted Answer

consumer price index

Question 29

What level of unemployment is considered to be full employment?

Accepted Answer

4-5%

Question 30

Which economist would least support government intervention to reduce unemployment?

Accepted Answer

Frederick von Hayek

Question 31

How are members of the Board of Governors chosen?

Accepted Answer

Presidential appointment with Senate confirmation

Question 32

What is the highest ranking group within the Fed?

Accepted Answer

Board of Governors

Question 33

Which of the following would be done to reduce inflation?

Accepted Answer

Fed sells bonds

Question 34

Which of the following would be expansionary fiscal policy?

Accepted Answer

increased government spending

Question 35

If the Fed wanted to remove money from the economy they would?

Accepted Answer

sell bonds

Question 36

To compare two countries wealth which would one use?

Accepted Answer

real GDP per capita

Question 37

Which group within the Fed determines what monetary policy to follow?

Accepted Answer

Federal Open Market Committee

Question 38

When there is high unemployment which of the following would help most?

Accepted Answer

lower interest rates

Question 39

Which of the following would not be an example of an automatic stabilizer?

Accepted Answer

higher taxes

Question 40

What is the most complete definition of GDP?

Accepted Answer

the total value of all new and final good and services

Macroeconomics Basics

Questions 40

Macroeconomics Basics

Questions 40