Podcast
Questions and Answers
Which of the following scenarios would MOST directly lead to an increase in a country's Gross Domestic Product (GDP)?
Which of the following scenarios would MOST directly lead to an increase in a country's Gross Domestic Product (GDP)?
- Businesses increase their investment in new equipment and technology. (correct)
- The government decreases its spending on infrastructure projects.
- Consumers increase their savings rate due to concerns about a future recession.
- Net exports decrease as imports rise and exports fall.
If a country is experiencing demand-pull inflation, which policy would be MOST effective in curbing it?
If a country is experiencing demand-pull inflation, which policy would be MOST effective in curbing it?
- Reducing the money supply through open market operations. (correct)
- Implementing tax cuts to increase disposable income.
- Increasing government spending to stimulate aggregate demand.
- Lowering interest rates to encourage borrowing and investment.
Which of the following is the BEST example of structural unemployment?
Which of the following is the BEST example of structural unemployment?
- A retail employee who is temporarily out of work between seasonal jobs.
- A recent college graduate searching for their first job.
- An autoworker who loses their job because automation has made their skills obsolete. (correct)
- A construction worker laid off during a recession.
According to Keynesian economics, what is the MOST appropriate government response during a recession?
According to Keynesian economics, what is the MOST appropriate government response during a recession?
Which monetary policy tool is MOST directly used to influence the federal funds rate?
Which monetary policy tool is MOST directly used to influence the federal funds rate?
Which of the following scenarios would MOST likely lead to an increase in a country's exports?
Which of the following scenarios would MOST likely lead to an increase in a country's exports?
Which of the following policies is MOST aligned with supply-side economics?
Which of the following policies is MOST aligned with supply-side economics?
If a country has a budget deficit, what does this indicate?
If a country has a budget deficit, what does this indicate?
In the context of macroeconomics, what is the 'natural rate of unemployment'?
In the context of macroeconomics, what is the 'natural rate of unemployment'?
Which of the following is an example of a leading economic indicator?
Which of the following is an example of a leading economic indicator?
Flashcards
Gross Domestic Product (GDP)
Gross Domestic Product (GDP)
Total value of goods and services produced within a country's borders during a specific period.
Inflation
Inflation
Rate at which the general level of prices for goods and services is rising.
Unemployment
Unemployment
Percentage of the labor force that is without work and actively seeking employment.
Interest Rates
Interest Rates
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Fiscal Policy
Fiscal Policy
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Monetary Policy
Monetary Policy
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Economic Growth
Economic Growth
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Full Employment
Full Employment
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Price Stability
Price Stability
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Contraction (Recession)
Contraction (Recession)
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Study Notes
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Description
Core concepts in macroeconomics, designed to test understanding of GDP, inflation, unemployment, and fiscal/monetary policy. Focus on Keynesian and supply-side economics. Includes leading economic indicators.
