Unit 5: Macroeconomics

Type of unemployment caused by a mismatch between skills I have and skills employers want.

Buying bonds, lowering the reserve requirement, and lowering the discount rate are examples of 

If real GDP increases, what would we expect to see with the unemployment rate?

This is the term for an rise in overall price levels in an economy.

Which part of the business cycle would represent a hot economy with full employment?

The labor force includes anyone 16 and older who is currently employed OR actively seeking work

Aggregate Demand is determined by total willingness and ability to spend.

How do economists measure economic growth?

Which of the following is not a tool the Fed uses to conduct monetary policy?

The federal government  raises minimum wage. What will most likely happen to aggregate supply?

What is nominal GDP?

I do not have a job, and have not looked for the last 2 months…Am I considered unemployed?

Price stability means...

Fiscal policy (President & Congress) & Monetary policy (Federal Reserve System) have same goals

Why do we subtract imports from exports when measuring the GDP? (X-M)

What does full employment mean?

Inflation is never a good thing.

Type of unemployment?  The economic recession has caused businesses to fire workers.

Aggregate demand shows the relationship between...

Type of unemployment?  I just graduated college and am looking for a job. 

The federal government lowers income tax rates on households.  What happens to unemployment?

If interest rates for loans are very high, what would happen to aggregate demand?

Inflation has the same impact on everyone.

The goal of expansionary fiscal policy is to address problems of...

The federal government lowers income tax rates on households.  What happens to the price level?

To conduct contractionary fiscal policy the government could...

Monetary policy is conducted by...

Which of the following is not true about the GDP?

The business cycle shows fluctuations in economic growth.  In the long run...

Which sector accounts for approximately 70% of the GDP?

Which of the following is not a major goal / focus in macroeconomics?

GDP = C + G + I + (X-M)       What does I stand for?

Fiscal policy is conducted by...

The federal government lowers income tax rates on households.  What will happen to real GDP?

What would the concern be if GDP growth was 7%?

The Consumer Price Index is used to measure changes in price level based on...

If the overall money supply in the economy decreases, what will happen to interest rates?

Monetary policy is best described as...

If monetary policy leads to lower interest rates, which is true about overall spending?

Inflation is most commonly caused by...