|
Economic growth |
1. A goal of fiscal policy is |
|
Decreases the inflation rate. |
2. Decreasing government spending usually |
|
Over age 16 who are trying but unable to find work. |
3. The unemployment rate reflects the percentage of people |
|
Increased currency |
4. Which of the following is not a goal of fiscal policy? |
|
Expansionary monetary policy. |
5. When the economy is operating at point C, the Federal Reserve is most likely to follow |
|
Increase growth |
6. When the economy is operating at point C, the Federal Reserve may decrease the discount rate to |
|
Buy securities in open market operations. |
7. If unemployment is rising rapidly, the Federal Reserve would most likely |
|
Recession |
8. Imagine that unemployment increases to record levels. The economy is in |
|
A peak |
9. Imagine you read an article that says "economists agree we have seen the worst of the inflation rate impact and expect it to lower very soon." The economy is likely in |
|
Inflation to be high |
10. Use this image to answer the following question. In the business cycle phase marked B, economists expect |
|
Roller coaster. |
11. A graph of the business cycle over time most resembles a |
|
Fails to earn a "living wage" for a family of four. |
12. As of 2009, an American worker earning minimum wage |
|
There will be a shortage of potatoes |
13. In the diagram above, what will happen if the government sets the price for potatoes at Point B? |
|
There will be a shortage of workers |
14. In the diagram above, what will happen if the government sets the minimum wage at Point B? |
|
There will be a surplus of Internet access. |
15. In the diagram above, what will happen if the government sets the price for Internet access at Point A? |
|
Bottled water plants |
16. The state legislature asks you to analyze several product markets for natural monopoly qualities. The legislature wishes to regulate one of the products to provide safer, more efficient, and standard quality to its citizens. Which product do you recommend? |
|
Electricity service |
17. An example of a natural monopoly product is |
|
The government ensures the supplier works safely and efficiently. |
18. One benefit of regulating a natural monopoly is that |
|
Debt |
19. The accumulation of years of spending more money than is collected in revenues over several years creates a budget |
|
Surplus |
20. When a government collects more revenue in one year than it spends, there is a budget |
|
Increases income taxes to eliminate the deficit |
21. You are a representative to the U.S. Congress. The U.S. federal budget debt grew by one billion dollars each of the last five years. To correct this, you should support the budget that |
|
Federal Open Market Committee |
22. Inflation is low and unemployment is high. The public is demanding action. Within the Federal Reserve, who has the power to act? |
|
Impact the money supply |
23. The Federal Reserve utilizes monetary policy to |
|
Earning dividends from stock in the Federal Reserve |
24. Banks that are members of the Federal Reserve have the benefit of |
|
Communication with other government leaders |
25. The Federal Reserve’s Board of Governors is responsible for |
Share This
Flashcard
