2549889
Descripción
Test por Everett Averhart, actualizado hace más de 1 año
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Creado por Everett Averhart
hace más de 9 años
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Pregunta 1
Pregunta
Business Cycles are__________________________________?
Respuesta
-
alternating rises and declines in the level of economic activity.
-
alternating rises and declines in the level of economic activity
Pregunta 2
Pregunta
What are the 4 components of a business cycle? (Separate each item by a semi-colon, followed by a space)
Respuesta
-
peak; recession; trough; expansion
-
peak; recession; trough;
Pregunta 3
Pregunta
At a peak____________________________?
Respuesta
-
business activity has reached a temporary maximum.
-
business activity has reached a temporary maximum
Pregunta 4
Pregunta
What is a recession?
Respuesta
-
A recession is a period of decline in total output, income, and employment.
-
a period of decline in total output, income, and employment
Pregunta 5
Pregunta
In the trough of the recession or depression,______________________________.
Respuesta
-
output and employment bottom out at their lowest levels
-
output and employment "bottom-out" at their lowest levels
Pregunta 6
Pregunta
A recession is usually followed by ____________________________________.
Respuesta
-
a recovery and expansion, a period in which real GDP, income, and employment rise.
-
a recovery and expansion, a period in which real GDP, income, and employment rise
Pregunta 7
Pregunta
Define Inflation.
Respuesta
-
Inflation is a rise in the general level of prices.
-
Inflation is a rise in the general level of prices
Pregunta 8
Pregunta
How is inflation measured?
Respuesta
-
according to the Consumer Price Index
-
According to the Consumer Price Index
Pregunta 9
Pregunta
What are the two types of inflation?
Respuesta
-
demand pull inflation and cost push inflation
-
demand-pull inflation and cost-push inflation
Pregunta 10
Pregunta
How many tools of monetary control does the Fed have?
Respuesta
-
4
-
four
Pregunta 11
Pregunta
The Fed has four main tools of monetary control it can use to alter the reserves of commercial banks. List them. (Separate each answer by a semi-colon, followed by a space.)
Respuesta
-
open market operations; the reserve ratio; the discount rate; interest on reserves
-
open-market operations; the reserve ratio; the discount rate; interest on reserves
Pregunta 12
Pregunta
List the three types of unemployment. (Separate each answer by a semi-colon, followed by a space.)
Respuesta
-
frictional; structural; cyclical
-
structural; frictional; cyclical
Pregunta 13
Pregunta
Define frictional unemployment.
Respuesta
-
A type of unemployment caused by workers voluntarily changing jobs and by temporary layoffs
-
unemployed workers between jobs
Pregunta 14
Pregunta
Define Structural unemployment.
Respuesta
-
unemployment of workers whose skills are not demanded by employers
-
workers who lack sufficient skill to obtain employment
-
workers who cannot easily move to locations where jobs are available
-
unemployment of workers whose skills are not demanded by employers, who lack sufficient skill to obtain employment, or who cannot easily move to locations where jobs are available
Pregunta 15
Pregunta
Firms that produce these goods are most affect by the business cycle.
Respuesta
-
durable goods
-
durable-goods
Pregunta 16
Pregunta
Why are firms that produce durable goods most affect by the business cycle?
Respuesta
-
because people forgo the opportunity to buy these goods in order to buy goods of necessity
-
because people forgo the opportunity to buy durable goods in order to buy goods of necessity
-
because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non durable goods
-
because people forgo the opportunity to buy durable goods in order to buy goods of necessity which would fall under the category of non durable goods
-
because people forgo the opportunity to buy durable goods in order to buy goods of necessity which would fall under the category of non-durable goods
-
because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non-durable goods
Pregunta 17
Pregunta
Firms that produce these goods are the least affected by the business cycle.
Respuesta
-
non-durable goods
-
non durable goods
Pregunta 18
Pregunta
Explain the cyclical impact of non-durable and durable goods.
Respuesta
-
Firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non-durable goods.
-
firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non-durable goods.
-
Firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non durable goods.
-
firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non durable goods.
-
Firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non-durable goods
-
firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non-durable goods
-
Firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non durable goods
-
firms that produce durable goods are affected most by the business cycle because people forgo the opportunity to buy these goods in order to buy goods of necessity which would fall under the category of non durable goods
Pregunta 19
Pregunta
List 3 examples of durable goods. (Separate each answer by a semi-colon, followed by a space.)
Respuesta
-
Automobiles; Computers; Refrigerators
-
automobiles; computers; refrigerators
Pregunta 20
Pregunta
List 3 examples of non-durable goods. (Separate each answer by a semi-colon, followed by a space.)
Respuesta
-
Food; Clothing; Medical Services
-
food; clothing; medical services
Pregunta 21
Pregunta
What are the five causes of business cycles? (Separate each answer by a semi-colon, followed by a space.)
Respuesta
-
Irregular innovation; Productivity changes; Monetary factors; Political events; Financial instability
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irregular innovation; productivity changes; monetary factors; political events; financial instability
-
Irregular Innovation; Productivity Changes; Monetary Factors; Political Events; Financial Instability
-
IPMPF
-
I.P.M.P.F.
Pregunta 22
Pregunta
Define Monetary Policy.
Respuesta
-
Monetary policy is policy which is enacted by the Federal Open Market Committee that consists of deliberate changes in the money supply to influence interest rates and thus the total level of spending in the economy.
-
Monetary policy is policy which is enacted by the Federal Open Market Committee that consists of deliberate changes in the money supply to influence interest rates and thus the total level of spending in the economy
-
policy enacted by the Federal Open Market Committee that consists of deliberate changes in the money supply to influence interest rates and thus the total level of spending in the economy
-
policy which is enacted by the Federal Open Market Committee that consists of deliberate changes in the money supply to influence interest rates and thus the total level of spending in the economy
-
policy enacted by the Federal Open Market Committee that consists of deliberate changes in the supply of money to influence interest rates and thus the total level of spending in the economy
Pregunta 23
Pregunta
What does (FOMC) stand for?
Respuesta
-
Federal Open Market Committee
-
federal open market committee
-
the federal open market committee
-
The Federal Open Market Committee
Pregunta 24
Pregunta
What is the goal of monetary policy?
Respuesta
-
The goal of monetary policy is to achieve and maintain price level stability, full employment, and economic growth.
-
The goal of monetary policy is to achieve and maintain price level stability, full employment, and economic growth
-
to achieve and maintain price level stability, full employment, and economic growth
Pregunta 25
Pregunta
What are two types of monetary policy enacted by the FOMC? (Separate each answer by a semi-colon, and a space.)
Respuesta
-
Expansionary Monetary Policy; Restrictive Monetary Policy
-
expansionary monetary policy; restrictive monetary policy
-
Expansionary monetary policy; Restrictive monetary policy
Pregunta 26
Pregunta
Describe Expansionary Monetary Policy.
Respuesta
-
Expansionary Monetary Policy is that which lowers the interest rate to bolster borrowing and spending, which will increase aggregate demand and expand real output.
-
Expansionary monetary policy is that which lowers the interest rate to bolster borrowing and spending, which will increase aggregate demand and expand real output.
-
Expansionary Monetary Policy is policy which lowers the interest rate to bolster borrowing and spending, which will increase aggregate demand and expand real output.
-
Expansionary Monetary Policy is policy which lowers the interest rate to bolster borrowing and spending, which will increase aggregate demand and expand real output
-
Expansionary Monetary Policy is that which lowers the interest rate in order to bolster borrowing and spending, which will increase aggregate demand and expand real output.
-
Expansionary Monetary Policy is that which lowers the interest rate in order to bolster borrowing and spending, which will increase aggregate demand and expand real output
Pregunta 27
Pregunta
Describe Restrictive Monetary Policy.
Respuesta
-
Restrictive Monetary Policy is that which will increase the interest rate to reduce borrowing and spending, which will curtail the expansion of aggregate demand and hold down price-level increases.
-
Restrictive Monetary Policy is that which will increase the interest rate to reduce borrowing and spending, which will curtail the expansion of aggregate demand and hold down price-level increases
-
Restrictive Monetary Policy is policy which will increase the interest rate in order to reduce borrowing and spending, which will decrease aggregate demand and hold down price level increases.
-
Restrictive Monetary Policy is policy which will increase the interest rate to reduce borrowing and spending, which will decrease aggregate demand and hold down price level increases.
-
Restrictive Monetary Policy is policy which will increase the interest rate in order to reduce borrowing and spending, which will decrease aggregate demand and hold down price level increases
-
Restrictive Monetary Policy is that which will increase the interest rate in order to reduce borrowing and spending, which will decrease aggregate demand and hold down price level increases.
-
Restrictive Monetary Policy is policy which will increase the interest rate in order to reduce borrowing and spending, which will curtail the expansion of aggregate demand and hold down price level increases.
Pregunta 28
Pregunta
Expansionary Monetary Policy is enacted when the economy is doing bad.
Respuesta
- True
- False
Pregunta 29
Pregunta
The FOMC enacts a Restrictive Monetary Policy when the economy is rapidly expanding.
Respuesta
- True
- False
Pregunta 30
Pregunta
Define Fiscal Policy.
Respuesta
-
Fiscal Policy is that which consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth.
-
Fiscal Policy is that which consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth
-
Fiscal policy is policy which consists of deliberate changes in government spending and tax collections in order to achieve full employment, control inflation, and encourage economic growth.
-
Fiscal policy is that which consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth
-
Fiscal policy is that which consists of deliberate changes in government spending and tax collections designed to achieve full employment, control inflation, and encourage economic growth.
-
Fiscal Policy is policy which consists of deliberate changes in government spending and tax collections in order to achieve full employment, control inflation, and encourage economic growth
Pregunta 31
Pregunta
Identify the two types of fiscal policy enforced by the federal government. (Separate each answer by a semi-colon, and a space.)
Respuesta
-
Expansionary Fiscal Policy; Contractionary Fiscal Policy
-
expansionary fiscal policy; contractionary fiscal policy
-
Expansionary fiscal policy; Contractionary fiscal policy
-
Expansionary and Contractionary fiscal policy
Pregunta 32
Pregunta
Who enacts fiscal policy?
Respuesta
-
The government
-
the government
Pregunta 33
Pregunta
The Government enacts Restrictive Fiscal Policy
Respuesta
- True
- False
Pregunta 34
Pregunta
The tools of fiscal policy include_____________________________.
Respuesta
-
The tools of fiscal policy include increasing or decreasing government spending, increasing or decreasing taxes, or some combination of the two. By manipulating these aspects of the economy the government can increase or decrease aggregate demand, and/or raise real GDP, as well as, inflation.
-
increasing or decreasing governmental spending, increasing or decreasing taxes, or some combination of the two, By manipulating these aspects of the economy, the government can increase or decrease aggregate demand and/or raise real GDP, as well as, inflation.
-
increasing or decreasing governmental spending, increasing or decreasing taxes, or some combination of the two. By manipulating these aspects of the economy the government can increase or decrease aggregate demand thereby raising real GDP or lowering or eliminating inflation.
Pregunta 35
Pregunta
What are the limitations to fiscal policy? (Separate each by a semi-colon, followed by a space.)
Respuesta
-
recognition lag; administrative lag; operational lag
-
Recognition lag; Administrative lag; Operational lag
Pregunta 36
Pregunta
Describe the recognition lag.
Respuesta
-
The recognition lag is the time between the beginning of recession or inflation and the certain awareness that it is actually happening.
-
The recognition lag is the time between the beginning of recession or inflation and the certain awareness that it is actually happening
-
the recognition lag is the time between the initial beginning of recession or inflation and the certain awareness that it is happening.
Pregunta 37
Pregunta
Describe the administrative lag.
Respuesta
-
The administrative lag is represented by the time fiscal action is initially needed and the time action is actually taken.
-
The administrative lag is represented by the time fiscal action is initially needed and the time action is actually taken
-
the administrative lag occurs between the time fiscal policy is initially needed and the time when action is actually taken
Pregunta 38
Pregunta
Describe the operational lag.
Respuesta
-
The operational lag occurs between the time fiscal policy is taken and the time that action actually affects output, the employment rate, or the price level.
-
The operational lag occurs between the time fiscal action is taken and the time that action actually affects output, the employment rate, and the price level.
-
The operational lag occurs between the time fiscal action is initially taken and the time that action actually affects output, the employment rate, and the price level.
-
The operational lag occurs between the time fiscal action is initially taken and the time that action actually affects output, the employment rate, and the price level
Pregunta 39
Pregunta
Describe the U.S. National Debt.
Respuesta
-
The U.S. national debt or public debt is the accumulation off all past federal deficits and surpluses.
-
The U.S. national debt or public debt is an accumulation of all past federal deficits and surpluses
-
The U.S. national debt, otherwise known as the public debt, is an accumulation of all past federal deficits and surpluses.
-
The U.S. national debt is an accumulation of all past federal deficits and/or surpluses
Pregunta 40
Pregunta
As of 2015, what is the U.S. national debt?
Respuesta
-
$18 trillion
-
As of 2015, the public debt is $18 trillion.
-
As of 2015, the public debt is $18 trillion
Pregunta 41
Pregunta
Assess the actual burden of the national debt.
Respuesta
-
The primary burden of the debt is the interest accruing on the bonds sold to finance the debt.
-
The primary burden of the debt is the interest accruing on the bonds sold to finance the debt
-
The interest accruing on the bonds sold to finance the debt is the primary burden of the national debt.
-
The primary burden of the national debt is the interest accruing on the bonds that are sold to finance the debt.
Pregunta 42
Pregunta
Discuss the issue of government securities as it relates to the national debt.
Respuesta
-
The distribution of government securities is highly uneven.
-
The distribution of government securities is highly uneven
-
Government securities are severely unevenly distributed.
-
The distribution of government securities is very uneven.
Pregunta 43
Pregunta
Discuss the relevance of interests as it pertains to the public debt.
Respuesta
-
The current public debt necessitates annual interests payments of $360 billion.
-
The current public debt necessitates annual interest payments of $360 billion
-
the current national debt necessitates annual interest payments of $360 billion
-
The current national debt necessitates annual interest payments of $360 billion.
Pregunta 44
Pregunta
Discuss the relevance of foreign institutions and citizens as they pertain to the U.S. national debt.
Respuesta
-
The 33 percent of the U.S. public debt held by citizens and institutions of foreign countries is an economic burden to Americans.
-
The 33 percent of the U.S. national debt held by citizens and institutions of foreign countries is an economic burden to Americans
-
Citizens and institutions of foreign countries hold approximately 33 percent of the U.S. national debt. This is an economic burden to Americans
-
The 33 percent of the U.S. national/ public debt held by citizens and institutions of foreign countries is an economic burden to Americans
Pregunta 45
Pregunta
Discuss how the continual refinancing of the U.S. national debt can impact future generations.
Respuesta
-
The continual refinancing of the large U.S. national debt can transfer a real economic burden to future generations by passing on to them a smaller stock of capital goods.
-
The continual refinancing of the large public debt can transfer a real economic burden to future generations by passing on to them a smaller stock of capital goods
-
A smaller stock of capital goods can be passed on to future generations as a result of the continual refinancing of the large public debt.
-
The continual refinancing of the huge national/public debt can transfer a real economic burden to future generations by passing on to them a smaller stock of capital goods.
Pregunta 46
Pregunta
Describe the federal funds rate.
Respuesta
-
The federal funds rate is the rate of interests that banks charge one another on overnight loans made from temporary excess reserves.
-
The federal funds rate is the rate of interests that banks charge one another for overnight loans made from temporary excess reserves
-
the federal funds rate is the rate of interest that banks charge other banks for overnight loans deriving from temporary excess reserves
-
the federal funds rate is the rate of interest that banks charge other banks for overnight loans taken from temporary excess reserves.
Pregunta 47
Pregunta
How does the Fed directly influence the federal funds rate?
Respuesta
-
The Fed, by using its influence on the Federal Reserve Bank of New York, can force it to undertake whatever open- market operations may be necessary to achieve and maintain the targeted rate.
-
The Fed, by using its influence on the Federal Reserve Bank of New York, can force it to undertake whatever open-market operations may be necessary to achieve and maintain the targeted rate
-
By using its influence on the Federal Reserve Bank of New York, the Fed can force it too undertake whatever open-market operations necessary to achieve and maintain the targeted rate.
-
In order to achieve and maintain the targeted rate, the Fed, by using its influence on the Federal Reserve Bank of New York, can force it to undertake whatever open-market operation it deems necessary.
Pregunta 48
Pregunta
Explain the effectiveness of Monetary Policy.
Respuesta
-
The effectiveness of monetary policy arises from its speed and flexibility as a process. Monetary policy also gains effectiveness from the fact that its isolated from political pressures.
-
The effectiveness of monetary policy arises from its speed and flexibility as a process. Monetary policy also gains effectiveness from the fact that its isolated from political pressures
-
The speed and flexibility of monetary policy are the main forces behind its effectiveness. It also gains considerable effectiveness from the fact that it is isolated from political pressures.
-
Monetary policy is made effective by its speed and flexibility as a process. Its also made effective by the fact that it is isolated from political pressures.
Pregunta 49
Pregunta
How many shortcoming does monetary policy involve?
Respuesta
-
4
-
four
Pregunta 50
Pregunta
What are the shortcomings of monetary policy?
Respuesta
-
The shortcomings of monetary policy include a recognition lag and an operational lag. Other shortcomings include: Cyclical asymmetry; Liquidity trap
-
The shortcomings of monetary policy include a recognition lag and an operational lag. Other shortcomings include: Cyclical asymmetry; Liquidity trap.
-
a recognition lag; an operational lag; liquidity trap; cyclical asymmetry.
-
a recognition lag; an operational lag; cyclical asymmetry; liquidity trap
Pregunta 51
Pregunta
In the aggregate, households increase their spending as their ______________________________rises, and spend a larger portion of a _________________ disposable income than that of a _____________________ disposable income.
Respuesta
-
income; large; small
-
want; unneeded; needed
-
income; needed; small
-
disposable income; large; small
-
interest rate; small; large
-
disposable income; small; large
-
disposable loan; small; large
-
opportunity; unearned; earned
Pregunta 52
Pregunta
If households consume a smaller and smaller proportion of DI as DI increases, then ________________________________________________________________.
Respuesta
-
they must be saving a larger and larger proportion.
-
they must be saving a larger and larger proportion
-
they must be saving a larger and larger proportion of DI.
-
they must be saving a larger and larger proportion of DI
Pregunta 53
Pregunta
The more money households receive, the more they are able to _____________________________________ and the less they are encouraged to __________________________.
Respuesta
-
save; spend
-
spend; invest
-
produce; consume
-
consume; save
-
consume; produce
-
produce; invest
-
invest; spend
-
shop; buy
-
invest; produce
Pregunta 54
Pregunta
Define Average Propensity to Consume.
Respuesta
-
Average propensity to consume is the fraction, or percentage, of total income that is consumed
-
Average propensity to consume is the fraction, or percentage, of total income that is consumed.
-
Average Propensity to Consume is that fraction, or percentage, of income that is consumed
-
Average propensity to consume is the percentage, or fraction of income that is consumed
Pregunta 55
Pregunta
Define Average propensity to save.
Respuesta
-
Average propensity to save is that fraction, or percentage, of total income that is saved.
-
Average propensity to save is that fraction of total income that is saved
-
Average propensity to save is that percentage of total income that is saved.
-
Average propensity to save is represented by that fraction or portion of total income that is saved
Pregunta 56
Pregunta
_________________________________________________________________________ is called the marginal propensity to consume.
Respuesta
-
the proportion, or fraction, or any change in income consumed
-
The proportion, or fraction, or any change in income consumed
-
The proportion, fraction, or any change in the amount of income consumed
-
The proportion, or fraction, or any change in the amount if income consumed
Pregunta 57
Pregunta
Define Marginal Propensity to Consume.
Respuesta
-
the MPC is the ratio of a change in consumption to a change in the income that caused the consumption change
-
The MPC is the ratio of change in consumption to a change in the income that caused the consumption change.
-
The Marginal Propensity to Consume is the ratio of a change in consumption to a change in the income that caused the consumption change
-
The Marginal Propensity to Consume is the ratio of change in consumption to a change in the income that caused the change in consumption
Pregunta 58
Pregunta
What determines the cost of investment?
Respuesta
-
The real interest rate determines the cost of investment.
-
the real interest rate determines the cost of investment.
-
the cost of investment is determined by the real interest rate
-
the real interest rate determines the cost of investment
Pregunta 59
Pregunta
What does the interest rate represent?
Respuesta
-
the interest rate represents either the cost of borrowing funds or the opportunity cost of investing your own funds which is forgone
-
the interest rate represents, either the cost of borrowing funds, or the opportunity cost of investing your own funds, which is forgone.
-
the interest rate represents either the opportunity costs of investing your own funds, which is forgone, or the cost of borrowing money.
-
the interest rate represents either the cost of borrowing money, or the opportunity costs of investing your own money, which is forgone.
Pregunta 60
Pregunta
Explain the multiplier effect.
Respuesta
-
the multiplier effect is when changes ripple through the economy to generate even larger changes in real GDP
-
the multiplier effect is when changes ripple through the economy to generate even larger changes in real GDP.
-
The multiplier effect is when changes ripple through the economy to generate even larger changes in GPD
-
the multiplier effect is when changes ripple through the economy with the effect of even larger changes which occur in real GDP
Pregunta 61
Pregunta
Multiplier effect equals______________________.
Respuesta
-
Change in real GDP/ initial change in spending
-
Change in real GDP / initial change in spending.
-
the change in real GDP/ the initial change in spending
-
the change in real GDP / initial change in spending
Pregunta 62
Pregunta
change in real GDP equals___________________________________
Respuesta
-
initial change in spending x multiplier
-
the initial change in spending x multiplier
-
multiplier x initial change in spending
-
the multiplier x initial change in spending
Pregunta 63
Pregunta
Why is the initial change in spending usually associated with investment during the multiplier effect?
Respuesta
-
The initial change in spending is usually associated with investment because it is so volatile. but changes in consumption are also subject to the multiplier effect .
-
the initial change in spending is usually associated with investment because it is so volatile. But, changes in consumption which is unrelated to income are also subject to the multiplier effect.
-
The initial change in spending is usually associated with investment because it is so volatile but changes in consumption are also subject to the multiplier effect.
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