What is the difference between deficit and debt?

Debt is long term, deficit is short term

GDP calculated using current prices

How can Fiscal Policy lead to a balanced budget?

if taxes are equal to gov't spending

How does the discount rate affect money supply?

When it goes up, money supply goes down

Imports subtracted from exports

Aggregate Demand represents...

the total demand of goods and services

How does the Reserve Ratio increase money supply?

A lower RRR allows banks lend more money

Aggregate Supply is different from regular supply because...

Aggregate Supply is the total of all supply

What are the four parts of the business cycle?

Peak, Trough, Expansion, Contraction

What is the difference between a depression and a recession?

Recession is short term and depression is long term

Stagflation is bad because

real GDP is decreasing and prices are going up

What is a discouraged worker?

Someone who has given up looking for a job

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Unit 2 review

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Questions 20

Answers

1
What is the difference between deficit and debt?
both can be fixed
Debt is short term, deficit is long term
Debt is long term, deficit is short term
both are bad
2
What are the components of Gross Domestic Product?
GDP=C+I+G+NX
GDP=C+I+F+NX
GDP=C+U+G+NX
GDP=Y+I+G+NX
3
Nominal GDP is...
GDP without consumption
GDP calculated using current prices
GDP that accounts for inflation
GDP without love
4
How can Fiscal Policy lead to a balanced budget?
If taxes revenue is more than gov't spending
if taxes are not collected
if taxes are equal to gov't spending
If taxes are less than the required amount
5
How does the discount rate affect money supply?
When it goes up, nothing happens
When it goes up, money supply goes down
When it goes up, money supply goes up
When it goes down, money supply goes down
6
Net exports are...
Net profit minus debt
Imports subtracted from exports
Exports subtracted from imports
debt plus deficit
7
Aggregate Demand represents...
the total demand of goods and services
demand for half of goods and services
demand of 3 goods or services
demand for 1 good or service
8
If you are laid off due to low sales, you are experiencing what unemployment?
Seasonal
Cyclical
Frictional
Frictional
9
How does the Reserve Ratio increase money supply?
A medium RRR allows banks lend medium money
A lower RRR allows banks lend more money
A higher RRR allows banks lend less money
A lower RRR allows banks lend less money
10
Macroeconomics studies
businesses
individuals
Kanye West
large scale economies
11
Aggregate Supply is different from regular supply because...
Aggregate Supply is the total of all supply
Aggregate means little
Aggregate means the economy is doing well
They are the same
12
What are the four parts of the business cycle?
Protraction, Trough, Expansion, Contraction
Peak, Trough, Expansion, Contraction
Peak, Trough, Expansion, Distraction
Peak, Relaxation, Expansion, Contraction
13
If you lack the skills to gain a job, you are experiencing...
Frictional unemployment
Structural unemployment
seasonal unemployment
Cyclical unemployment
14
What is the difference between a depression and a recession?
Recession is long term and depression is short term
They are both bad things
Recession is short term and depression is long term
Recession is long term and depression is long term
15
Stagflation is bad because
nominal GDP is going up and prices are going up
real GDP is increasing and prices are going down
real GDP is decreasing and prices are going up
nominal GDP is staying the same and prices are going down
16
When prices rise we call it...
deflation
inflation
stagflation
discount rate
17
What is a discouraged worker?
Someone who has given up looking for a job
Someone who is tired of working
Someone who is looking for a job
Someone who is in school
18
What Open Market Operations are used to lower inflation?
Raise discount rate
Buying Bonds
Selling Bonds
Lower RRR
19
What does the Federal Reserve System control?
Monetary Policy
Domestic Policy
Fiscal Policy
Foreign Policy
20
What does the Consumer Price Index help to calculate?
deflation rate
Market basket
Inflation rate
GDP

Unit 2 review Flashcards | StudBud