Mac Daddy Macro!!

Question 1

The process by which the government manages spending and taxes to influence the economy

Accepted Answer

fiscal policy

Question 2

Economic growth is at a high rate, what could the FED do to slow it down?

Accepted Answer

raise the discount rate

Question 3

Who benefits the most during times of high inflation?

Accepted Answer

people paying long-term loans

Question 4

The process the Federal Reserve uses to control the supply and availability of money

Accepted Answer

monetary policy

Question 5

Which of the following is most likely when the business cycle is in a trough?

Accepted Answer

high unemployment

Question 6

What is the main reason the Federal Reserve would raise the interest rate?

Accepted Answer

stop rising inflation

Question 7

What would most likely happen if the FED decided to increase the reserve requirement for banks?

Accepted Answer

amount of circulating money would decrease

Question 8

What looks at ALL things produced and consumed in the nation over a given period of time?

Accepted Answer

GDP

Question 9

A worker gets a raise, this increase in real per capita output is an improvement in

Accepted Answer

the standard of living

Question 10

Mrs. Hudlow got offered a great job in Orlando. Coach Hudlow had to quit his so they could move

Accepted Answer

frictional unemployment

Question 11

Economic growth is at a high rate, what could the FED do to slow it down?

Accepted Answer

raise the discount rate

Question 12

Every year that our government operates in a budget deficit it adds to our ___.

Accepted Answer

national debt

Question 13

If the federal government spends more money than it collects over the course of a year, then

Accepted Answer

it has a deficit

Question 14

If the price of goods from Wal-Mart cost more now than in Jan., then we see that inflation has

Accepted Answer

increased

Question 15

In 2008, many U.S. families received a tax rebate check from the IRS. Why were rebates issued?

Accepted Answer

to stimulate the economy

Question 16

How does the government determine economic growth in a year?

Accepted Answer

real GDP

Question 17

What does the statement "money is a store of value" mean?

Accepted Answer

money will always keep its face value

Question 18

Unemployment insurance, Welfare, Medicare, and Medicaid, and Social Security are components of

Accepted Answer

fiscal policy

Question 19

The unemployment rate is an

Accepted Answer

economic indicator

Question 20

The tool used to measure the "market basket" of goods over a period of time is

Accepted Answer

CPI

Question 21

Ford introduces robotics to help build cars. Yoda doesn't have computer skills and is fired.

Accepted Answer

structural unemployment

Question 22

Sam works in Helen for Cool River Tubing. He has to find another job in the winter. This is ..

Accepted Answer

seasonal unemployment

Question 23

In the 90's, computer tech boomed causing huge growth how could fiscal policy work to slow it?

Accepted Answer

increase taxes

Question 24

If the federal government wants to encourage businesses and consumers to spend more they would

Accepted Answer

decrease taxes

Question 25

Who would be least likely to hurt from a small rise in inflation?

Accepted Answer

CEO of Fortune 500 company

Question 26

Buying and selling U.S. securities is one way the Federal Reserve can

Accepted Answer

regulate money supply

Question 27

What is the name of the "central bank"of the United States?

Accepted Answer

The Federal Reserve

Question 28

A period during which the real GDP declines for 2 quarters in a row, or 6 months is considered

Accepted Answer

recession

Question 29

According the the GDP formula, GDP=C+I+G+Xn, what does Xn represent?

Accepted Answer

net exports

Question 30

A GDP calculated without factoring in inflation is called

Accepted Answer

nominal GDP

Question 31

Who is in charge of the buying and selling of bonds to control the money supply in the U.S.?

Accepted Answer

FOMC

Question 32

When wages and prices go up and unemployment drops the economy is in what phase?

Accepted Answer

expansion

Question 33

Monetary policy is best described as

Accepted Answer

actions by the FED to expand or contract the economy

Question 34

What would most likely occur after the government increases taxes?

Accepted Answer

consumer spending decreases

Question 35

One sign that the economy is in a recession is...

Accepted Answer

consumer spending drops

Question 36

Leaders of Belize decide to enact contractionary fiscal policy. Which action is fiscal policy?

Accepted Answer

reduce government spending

Question 37

Which rate is a HEALTHY rate of unemployment in the United States?

Accepted Answer

4-6%

Question 38

A healthy unemployment rate is 5%, that means we have all types of unemployment except

Accepted Answer

cyclical

Question 39

Aggregate supply & demand drops in the 3rd quarter of the year indicating a period of economic

Accepted Answer

contraction

Question 40

When inflation occurs, the buying power of the dollar would

Accepted Answer

decrease

Mac Daddy Macro!!

Questions 40

Mac Daddy Macro!!

Questions 40