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Unit 3: Macroeconomics Flashcards | StudBud
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Unit 3: Macroeconomics
Unit 3: Macroeconomics
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An #economics quiz to review the different topics within Macroeconomics.
Flashcards
37 cards
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Questions
37
Answers
1
What are the key economic indicators ?
GDP, Inflation, Transactions and Unemployment
CPI, Inflation, and the Fiscal Policy
GDP, Inflation, and Unemployment
GDP, Monetary Policy, CPI, and Open Market Operations
2
In which phase of the business cycle is the real output (GDP) at its highest?
contraction/recession
peak
trough
expansion/recovery
3
What are two fiscal policy tools the govt. can use to expand the economy?
decrease taxes and increase spending
increase taxes and decrease spending
use a monetary policy
4
A period of slow economic growth along with high inflation can be described as :
Trough
deflation
inflation
stagflation
5
When the government spends more money than they receive in taxes, the immediate result is :
A decrease in GDP
A federal budget surplus
A federal budget deficit
An increase in GDP
6
Real GDP is -------- and Nominal GDP is -------
the current price measure ; adjusted for price changes
adjusted for price changes; the current price measure
7
Macroeconomics is the study of :
choices made by individuals and companies.
the prices of goods that a typical household will purchase.
large scale economics, or the national economy as a whole.
how scarce resources are used to satisfy our wants/needs
8
When calculating GDP, would receiving a $500 Social Security check be included?
No ; it is a financial transaction
Yes ; it is consumption
Yes ; it is an investment
No ; it is a transfer payment
9
When was the Federal Reserve founded?
1913
1933
1923
1813
10
Which is not a function of the Federal Reserve?
operating payment system
passing tax laws
regulating/supervising banks
establishing monetary policy
11
Which of the following is not included in GDP?
a barber's income from cutting hair
purchasing a new home
an increase in business inventories
purchasing a 2012 Honda Civic
12
What is happening when unemployment rises while aggregate demand and GDP decrease?
Aggregate supply is increasing
The economy is in an expansion phase
The economy is in recovery
The economy is facing a slowdown
13
If the Federal Reserve lowers the Reserve Requirement, what will happen to the money supply?
the money supply will stay the same
the money supply will decrease
the money supply will increase
14
Which of the following occurs when there is a decrease in the overall price levels?
Stagflation
Inflation
Deflation
15
Which is not an effect of high interest rates?
consumers pay more to borrow money
unemployment rises
businesses cannot expand
spending increases
16
Which of the following is not included in calculating GDP?
an increase in business inventories
a barber's income from cutting hair
purchasing a new home
purchasing a 2012 Honda Civic
17
What causes a shift in aggregate demand?
changes in the overall cost of production
government revenue and savings/spending rate
consumer taste and preferences
government taxes/spending and savings/spending rate
18
If the Federal Reserve increases the discount rate, what will happen to the money supply?
the money supply will stay the same
the money supply will decrease
the money supply will increase
19
The interest rate charged by the Federal Reserve to banks that borrow money is ---------
discount rate
reserve requirement/ratio
member discount rate
open market operations
20
The percentage of people who are able to work but cannot find a job is considered to be :
the worker's rate
the unemployment rate
the employment rate
the discouraged worker rate
21
Who is the current Fed. Chair?
Ben Bernanke
Alan Greenspan
Nancy Pelosi
Janet Yellen
22
What do we call a recession that lasts more than two quarters?
market crash
a depression
trough
a long-term recession
23
What is the formula for calculating GDP?
C+I+M+(G-X)
C+I+G+(M-X)
C+I+G+(X-M)
S+I+G+(X-M)
24
Total amount of goods and services produced and supplied by an economy over a period of time is
aggregate demand
Nominal GDP
aggregate supply
Real GDP
25
Why does the Federal Reserve lower interest rates?
to stimulate the economy
to combat inflation
26
Who handles the fiscal policy?
judicial branch
Federal Reserve
legislative branch
27
Which best describes a deficit?
when the country collects more money than they spent
when the country spends more money than they collect
the amount of money a country lends to another
when an individual does not pay taxes
28
Which BEST describes a national debt?
The amount of money a country has borrowed for one year
The accumulation of deficits and money the country owes
The amount of money the country owes for one year
the amount of money the country collects in taxes
29
The consumer price index is a measure of :
Aggregate demand
Aggregate supply
GDP
Inflation
30
If the Federal Reserve sells securities/bonds to financial institutions, the money supply will
increase
decrease
stay the same
31
Which is not a goal of the Federal Reserve?
Stable Prices
Securing Banks
Full Employment
Sustainable Economic Growth
32
What is the structure of the Federal Reserve?
Board of Governors (12) , FOMC, and 7 Reserve Banks
Board of Members (12) , FOMC, and 7 Reserve Banks
Board of Members ( 7 ), FOMC, and 12 Reserve Banks
Board of Governors ( 7) , FOMC, and 12 Reserve Banks
33
People within the working age who are employed or are unemployed looking for work are a part of
out of the labor force
the labor force
discouraged workers
34
What are the four types of unemployment?
Seasonal, Structural, Cyclical, and Transferring
Cyclical, Monthly, Frictional, Structural
Frictional, Seasonal, Cyclic, and Structural
Structural, Frictional, Cyclical, and Seasonal
35
An increase in the overall price levels that results from increased money supply and spending.
Deflation
Stagflation
Inflation
Demand Pull Inflation
36
What do the letters in the GDP formula stand for?
consumption, inventories, gov. spending, and net exports
consumption , investment, gov. spending, and net exports
consumption, investment, gov. revenue, and net exports
consumer, investment, gov. spending, and net exports
37
What is the formula for unemployment?
( # of employed / unemployed ) x 100
( # of employed / labor force ) x 100
( # unemployed / employed ) x 100
( # unemployed / labor force ) x 100
