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economic indicators, fiscal and monetary policy
Flashcards
25 cards
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Questions
25
Answers
1
Which of the following is NOT a tool of monetary policy?
conducting open market operations
changing the tax rate
changing the discount rate
changing the reserve requirement
2
Fill in the blanks. People borrow _________ when interest rates are __________.
less, low
more, high
sugar, numbers
more, low
3
Which of the following would NOT count toward GDP?
Payment for a haircut
Buying new shoes
Purchase of Google stock
The Purchase of a new car
4
In the circular flow model, what is exchanged in the factor market?
goods and services
stocks and bonds
financial assets
productive resources
5
On the seventh day of Christmas, my true love gave to me
Seven swans a swimming
Seven ladies dancing
Seven swans a singing
Seven ladies swimming
6
Monetary Policy is conducted by the
President and Congress
FBI
Federal Reserve
Koch Brothers
7
Economists who believe that the business cycle will always correct itself are called
Keynesian economists
Classical economists
Lazy (laissez) economists
Cyclists
8
Which of the following would put more money into circulation?
reducing government spending
raising the reserve requirement
raising the discount rate
buying bonds
9
If we want to increase aggregate demand, which of the following would we do?
sell bonds
increase government spending
raise taxes
raise the discount rate
10
Which of the following would the Fed do to combat high inflation?
Lower the discount rate
Sell bonds
Lower the reserve requirement
Move to Canada
11
On the aggregate supply/aggregate demand model, what is the label for the x-axis?
GDPR
CPI
Quantity
Price Level
12
Which of the following monetary policies would work to stimulate aggregate demand?
Congress raises taxes
The Fed sells bonds
The Fed buys bonds
Congress cuts taxes
13
What is the equation for the expenditure model of calculating GDP?
GDP = C x I x G x Xn
GDP = C + I + G + Xn
GDP = FUN!
GDP = C - I - G - Xn
14
In the circular flow model, firms supply the product market with
goods and services
revenue
payments for resources
factors of production
15
Which of the following is NOT one of the kinds of unemployment?
Strategic Unemployment
Structural Unemployment
Frictional Unemployment
Cyclical Unemployment
16
Who conducts fiscal policy?
The Bank of the United States
Congress and the President
The Federal Reserve
Wall Street
17
What kind of inflation is pictured here?
Cost Pull Inflation
Deflation
Demand Pull Inflation
Cost Push Inflation
18
We call the lowest point on the business cycle a
peak
trough
acme
valley
19
Which of the following would count toward GDP?
a social security payment to a retiree
the purchase of a three-year-old car
sales of illicit drugs
the government's purchase of a new drone
20
If aggregate demand is increasing, we would draw it shifting to the
bottom
left
top
right
21
Who is famous for saying that, "in the long run, we are all dead."
Adam Smith
Herbert Hoover
John Maynard Keynes
Franklin Delano Roosevelt
22
What does GDP stand for?
Good Donuts and Pies
Gross Domestic Product
Gross Domestic Profit
Goal Domestic Profit
23
(Assuming a balanced budget initially) fiscal policies to fix a recession will cause
unemployment
a deficit
no change
a surplus
24
What do we call at least two consecutive quarters of a decline in GDP?
expansion
recession
disinflation
inflation
25
Which of the following is NOT one of the ways that Ms. Dawson refers to the Federal Reserve?
the Fed
the Mama Bank
the Feds
the hand on the money faucet
