Economic Policy Basics 2025

Economic decisions are based on the past

During which phase of the business cycle does the economy reach its lowest point?

Opportunity cost is an opportunity

What are open market operations?

When supply is greater than demand

The government wants the Consumer Price Index to be

The choices you give up when you make a decision

Basic economic questions

What is the main goal of monetary policy?

When the Federal Reserve sells government bonds, what effect does it have on the economy?

Consumer Price Index measures

A period of declining economic performance

During which phase of the business cycle does the economy reach its highest point?

Which branch of government is responsible for fiscal policy in the United States?

The economy follows a predictable pattern called the

Economic decisions are made by the government

Who is responsible for implementing monetary policy in the United States?

What is a reserve requirement?

the percentage of people who want to work but don’t have a job

Gross Domestic Policy measures

If Congress wants to slow down an economy that is growing too fast, it could

The business cycle is

a list of the prices of good and services that is monitored to see how prices are changing

When the Federal Reserve decreases the discount rate, what effect does it have on the economy?

The government wants the unemployment rate to be

When demand is greater than supply

During which phase of the business cycle does the economy experience a decline in economic activity?

Economic decisions are made based on supply and demand

Examples of the US mixed economy

The unemployment rate measures

What is the discount rate?

What is fiscal policy?

the total value of goods and services produced in a country

When the Federal Reserve increases the reserve requirement, what effect does it have on the economy?

How do reserve requirements impact the economy?

The government wants the Gross Domestic Product to be