5 Written questions
5 Matching questions
- Money Multiplier
- Command Economy
- Balanced Budget
- a A reduction in the rate on inflation
- b a situation in which the government's spending is exactly equal to the total taxes and other revenues it collects during a given period of time
- c profits distributed to stockholders on a per-share basis
- d An economic system in which the government controls a country's economy.
- e The multiple at which the money supply increases as a result in an increase in fresh reserves in the banking system
5 Multiple choice questions
- Unemployment that fluctuates with the business cycle, increasing during contractions and decreasing during expansions
- The total value of goods and services produced within the borders of a country during a specific time period, usually one year.
- The part of consumption that is independent of the level of disposable income.
- Cash transfers for those who lose their jobs and actively seek employment. Last for up to 6 months usually. (more during recessions)
- An automatic increase in the wages of workers or payments received to adjust for the impact of inflation
5 True/False questions
Expansionary Fiscal Policy → An increase in government purchases, decrease in net taxes, or some combination of the two aimed at increasing aggregate demand enough to return the economy to its output, thereby reducing unemployment
Cost Push Inflation → A reduction in the rate on inflation
Wealth of Nations → A sustained decrease in the price level
Corporate Income Taxes → a tax for which the percentage of income paid in taxes decreases as income increases
Normative Statement → a statement that reflects an opinion, which cannot be proved or disproved by reference to the facts