Macroeconomics Review

when the total value of the GDP is not adjusted for inflation

Which item is NOT a means to finance government spending?

In a free-enterprise economy, the LEAST LIKELY effect of economic growth would be

the purchase of capital goods by businesses

Which of these would be counted when calculating the GDP of the U.S?

How will a contractionary fiscal policy affect a budget deficit?

What is NOT affected by decisions of the Federal Open Market Committee?

If the Fed adopts an expansionary monetary policy

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

A right shift of the aggregate DEMAND line causes an increase in

Typewriters are being replaced by computers and Ned finds less work as a typewriter repairman.

the avg. of overall prices in economy & found on y-axis of aggregate demand and supply curves

3 year period = increase in real GDP, low inflation, declining unemployment rate. The U.S.

Which of these is MOST LIKELY to occur after the government increases taxes?

What does contractionary fiscal policy do to economic growth?

Which pairs of operations BEST fit with fiscal policy?

Which choice shows the stages of the business cycle in the correct order?

When inflation occurs, the buying power of the dollar would

A vehicle produced in the June '09 and sold in Dec '12 would be counted in which year's GDP?

Which action would be a change in the government's fiscal policy?

when overall price levels increase because the resource costs increase

If the fed gov wants to encourage businesses & consumers to spend more money, MOST LIKELY it

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

the overall desire by consumers in the economy to purchase goods and services

goods brought into the U.S. and used to calculate part of the GDP

Why are tax rebate checks distributed from the IRS?

One of the primary goals of stabilizing the economy is to

Which of these is the best definition of GDP?

What consumer behavior is the Fed trying to encourage when implementing a loose monetary policy

By est. reserve requirements for banks & buying & selling US gov securities the Fed can

when overall price levels increase due to purchases by consumers

Which of these is MOST LIKELY a result of a high unemployment rate in the U.S.?

Aggregate demand in the U.S. is influenced by both

Fed wants to increase the money supply in U.S. What are they likely to do to accomplish this?

Monetary policy is BEST describes as

The Federal Reserve System controls the size of the

What is the main goal of the Federal Reserve in its monetary policy?

Which has LEAST LIKELY been the historical goal of the Fed's monetary policy?

What would MOST LIKELY happen if the Fed decided to increase the reserve requirement in banks?

A left shift of the aggregate SUPPLY line causes an increase in

How would an overall decrease in investment and consumer consumption affect GDP?

GDP adjusted for inflation in order to compare one year to the next

If the federal government spends more than it collects in revenue, then

= C+I+G+(X-M)

goods made in the U.S. that are sent out to other countries & used to calculate part of the GDP

The Consumer Price Index (CPI) is best used to determine

Fiscal policy affects which two parts of aggregate demand directly?