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Macroeconomics
Macroeconomics
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1
in this phase of the business cycle the circular flow will slow down
3
1
4
2
2
C+I+G+Nx=
Inflation
Unemployment
GDP
CPI
3
Which of the following is not a tool of the Federal Reserve Bank?
Changing interest rates
Reserve Rate
Raising taxes
Open Market Opperations
4
If the discount rate is lowered the Fed is trying encourage what phase of the business cycle
Contraction
Lending
Expansion
Peak
5
Fiscal policy is involved in changing which
two parts
of the GDP calculator?
Nx
I
C
G
6
We measure this indicator by calculating the price of a specific basket of goods
LOL
CPI
BLS
GDP
7
If the unemployment rate is to high which graph should the Fed and government work for?
A
C
D
B
8
The production in the country are rising at which phase
4
3
2
1
9
During this period of time unemployment will most likely increase
1
2
3
4
10
If you work on a golf course in up state NY you may experience what type of unemployment?
Frictional Unemployed
Seasonal Unemployed
Structural Unemployed
Cyclical Unemployed
11
This period on the business cycle is often refered to as a recession
1
3
2
4
12
Which of the following will be least likely to occur in a contraction?
GDP Rises
Inflation Rises
Unemployment Rises
13
If your job was replaced by a new form of technology you are..
Frictional Unemployed
Cyclical Unemployed
Structural Unemployed
Seasonal Unemployed
14
What rate of unemployment is seen as natural in the USA?
10 %
1-3 %
0
4 - 6%
15
Which of these graphs will cause prices to rise? 2 correct
C
D
B
A
16
Which of the following is not a goal of both monetary and fiscal policy?
Reduce inflation
alter business cycle
change taxes
reduce unemployment
17
What group will be most negatively effected by inflation?
Landscaper
computer company
General Contractor
Person living on pension
18
Which national institution does Fiscal Policy and how?
Federal Reserve by changing $ supply
Congress with tax & spend policy
Congress by changing $ supply
Federal Reserve with tax & spend policy
19
What phase of the business cycle is point 2?
Peak
Trough
Contraction
Expansion
20
The amount of money spent from households is which part of GDP calculation?
I
C
G
Nx
21
This picture shows what type of economic policy?
Expansionary Fiscal Policy
Conractionary Fiscal Policy
Contractionary Fiscal Policy
Expansionary Monetary Policy
22
What rate of inflation is called creeping and is seen as natural in the USA?
1-3 %
10 %
0
3 - 6%
23
Which of the following is a regulation that could require banks to hold onto more money?
Reserve Rate
higher taxes
Discount Rate
Open Market Opperations
24
If Government increases spending and decreases taxes a negative effect will be...
Higher unemployment
Lower Unemployment
lower inflation
growing debt
25
When Aggregate Demand increases jobs and GDP are represented by which?
supply shift change
demand shift change
The Price Axis change
The Quantity axis change
26
At what phase will inflation most likely be a growing problem?
1
4
2
3
27
What phase of the business cycle is point 3?
Contraction
Trough
Peak
Expansion
28
When the economy is in stage 4 the government may use ______________ to slow it down.
Contractionary Policy
Expansionary Policy
Peak Policy
Trough Policy
29
Which of these graphs shows Cost-Push Inflation?
A
D
C
B
30
What phase of the business cycle is point 1
Trough
Contraction
Peak
Expansion
31
Which of these graphs shows Demand-Pull Inflation?
A
C
B
D
32
What is the Fed trying to do when they are using expansionary monetary policy?
Decrease money supply
Increase money supply
Increase Taxes
Decrease Spending
33
Very high levels of inflation are called___and are usually caused by nations___too much money.
Deflation and destroying
Hyperinflation and lending
Hyperinflation and printing
Inflation and printing
34
Which of the following situations could not be handled by Fiscal or Monetary Policy?
Recession
High unemployment
High inflation
High unemployment and inflation
35
What phase of the business cycle is point 4?
Trough
Contraction
Peak
Expansion
36
If the following shift occurs what will happen to inflation?
cannot tell
Inflation falls
Inflation stays the same
Inflation rises
37
Unemployment stops falling at this phase of the business cycle
3
4
1
2
38
Which national institution does Monetary Policy and how?
Congress by changing $ supply
Federal Reserve by changing $ supply
Congress with tax & spend policy
Federal Reserve with tax & spend policy
39
Which of these indicators of the health of the economy is not one of the big 3
CPI
Stock market
Unemployment Rate
GDP
40
Which term is the best indicator of how much value the nation produces in a given period.
Employment
GDP
Inflation
CPI