The unemployment rate is the...

Percentage of the Labor force unemployed

The three functions of money are

Medium of exchange, unit of account, and store of value

The public debt is the

Accumulation of all the past deficits minus all past surpluses

The Laffer curve illustrates that

A decrease in tax rates can cause an increase in tax revenues

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Macroeconomics final exam review

20 termsStudBud Administration114 plays

By Carley Huber

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Questions 20

Answers

1
You probably wouldn't be bothered by inflation if
you owned a house.
you owed lots of money.
all of these.
your paycheck was linked to the CPI.
2
Which of these is not included in the labor force?
frictionally unemployed workers
discouraged workers
vacationers
part-time workers
3
Inflation is measured by...
Consumer Price Index (CPI)
Net exports-Imports
Gross Domestic Product (GDP)
Rate of change of the supply curve
4
To an economist, an increase in quantity demanded is the same thing as an increase in demand...
False
True
5
Fiscal policy can be either expansionary or contractionary.
True
False
6
The unemployment rate is the...
Percentage of the Labor force employed
The relationship between unemployment and inflation
The natural rate of unemployment
Percentage of the Labor force unemployed
7
The three functions of money are
Medium of exchange, unit of account, and store of value
Medium of exchange, unit of account and store of credit
Liquidity, store of value, and gifting
Liquidity, unit of account, and gifting
8
Which of these are considered part of M1?
checkable deposits
Federal Reserve Notes
coins
All of these
9
It's better to have a 5% increase in output and no inflation instead of the opposite.
False
True
10
If we need a shift right in the aggregate demand model, what point are we in the Business Cycle?
Expansionary Point
Trough Point
None of the above
Peak Point
11
Price floors are set below the market price..
False
True
12
The public debt is the
M1+M2
Accumulation of all the past deficits minus all past surpluses
Ratio of all past deficits to all past surpluses
Differences between current spending and current tax revenues.
13
The smallest expenditure component of GDP is
Consumer Spending)
Net Exports
Business Spending
Government Spending
14
The US banking sector uses a ___ banking system, allowing banks to expand the money supply by creating loans.
Fractional Reserve
Fiscal
Reserve
Monetary
15
More than anything else, a nation's wealth depends upon its natural resources.
False
True
16
The Laffer curve illustrates that
A decrease in tax rates always causes a decrease in tax revenues
There is only one possible tax rate
A decrease in tax rates can cause an increase in tax revenues
An increase in tax rates always causes an increase in tax revenues
17
Which of these is not included as a determinant of supply?
A change in taxes and subsidies
allocation of tax revenues
Change in technology
A change in producer expectations
18
Which of these is a substitute good?
Bread and Butter
Tuna and Salmon
Xbox and Video Games
Car and Fuel
19
A period of temporary economic decline during which trade and industrial activity are reduced.
decline
a depression
Recession
pandemic
20
Which of the following is considered a open market activity?
increasing the discount rate
Selling government bonds
putting money in a savings account
increasing government spending

Macroeconomics final exam review Flashcards | StudBud