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Unit 4: Macroeconomics Flashcards | StudBud
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Unit 4: Macroeconomics
Unit 4: Macroeconomics
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Answers
1
If the government is spending more money than it is taking in with taxes, it is running a
Budget Deficit
Inflationary Gap
Budget Surplus
Balanced Budget
2
Who is most hurt by inflation?
A retired couple living on a fixed income of $2,000 a month
A man who borrowed $5000 that must be repaid in 20 years
A homewoner with a 30 year fixed mortgage
A car owner with a 5 year fixed car payment
3
Easy money monetary policy includes all of the following EXCEPT
Decrease the Discount Rate
Buy Bonds through Open Market Operations
Sell Bonds through Open Market Operations
Decrease the Reserve Requirment
4
Who is responsible for Monetary Policy?
Congress
State Governors
President
FED
5
If Mrs. McClaskey was just fired but decided to stay home to raise the kids, is she included in the unemployment rate?
Yes
No
6
Intense inflation that can go as high as 500% or higher is known as
creeping inflation
deflation
galloping inflation
hyperinflation
7
A gasoline tax has a greater effect on lower incomes compared to higher incomes. What type of tax is this?
Progressive
Proportional
Regressive
8
A recent college grad who just graduated and is looking for their 1st job would be considered THIS type of unemployed
Cyclical
Frictional
Seasonal
Structural
9
The dollar value of all final goods and services purchased within the US is known as
Personal Income
Macroeconomics
Consumer Price Index
Gross Domestic Product
10
What economist is most associated with Demand Side Fiscal policies?
Donald Trump
Milton Friedman
John Maynard Keynes
Ronald Reagan
11
Which president is most associated with supply side fiscal policies?
FDR
Ronald Reagan
Richard Nixon
Barack Obama
12
Consider this situation: Karen purchased flour to bake cupcakes which she will sell to consumers in her bakery shop.
Karen's purchase of flour WOULD be included in GDP
Karen's purchase of flour would NOT be included in GDP
13
What is the primary way inflation is measured?
CPI
Reserve Requirement
GDP
Unemployment Rates
14
Which of the following is NOT one of the categories of GDP Calculation?
Consumer spending
Intermediate goods
Government Purchases
Business Investment
15
What unemployment rate is considered full employment?
10% or below
0%
8% or below
5% or below
16
What is the primary way the economic growth is measured?
GDP
CPI
Interest Rates
Unemployment Rates
17
The Federal gov increases welfare payments and food stamps to individuals living under the poverty line.
This government spending would NOT be included in GDP
This government spending would be included in GDP
18
Consider this situation: Mrs. McClaskey purchases a used book from Goodwill
Ms. McClaskey's purchase would be included in GDP
Mrs. McClaskey's purchase would NOT be included in GDP
19
What is the technical definition of a recession?
1 year of negative GDP
2 years of negative GDP
1 quarter of negative GDP
2 or more quarters of negative GDP
20
Deregulation (decreasing regulations on businesses) is most associated with
Demand-Side economics
Supply-Side economics
21
Which of the following are goals for the macro-economy?
These are all goals for the macro-economy
Economic Growth
Stable Prices
Low Unemployment
22
This is the lowest point in the business cycle and GDP is about to increase
Trough
Peak
Contraction
Expansion
23
Fiscal policy is defined as
The use of government spending and taxing to influence the economy
A commitment to deregulation an low taxes
A policy of limited government involvement in the economy
The use of command economy quotas in a free enterprise system
24
What type of monetary policy would be expected if CPI was showing inflation rates increasing by 10%
Easy
Tight
25
What causes demand pull inflation?
decrease in price due to an increase in supply
rise in prices due to an increase in production costs
rise in prices due to an increase in consumption of goods and services
rise in prices due a decrease in supply
26
The study of the economy as a whole, including employment, gross, GDP, inflation and economic growth is known as
Supply and Demand
Microeconomics
Market Study
Macroeconomics
27
With a growing economy, prices will generally rise. What is this called?
Staglation
Deflation
Inflation
28
A high school drop out cannot get a job and is consitently told they aren't qualified for the jobs they are applying for
Cyclical
Frictional
Structural
Seasonal
