1. Government expenditures create demand for goods and services.

This is known as __________ and will cause AD to shift to the __________.

a.)contractionary monetary policy; left

b.)contractionary fiscal policy; right

c.)expansionary monetary policy; left

d.)expansionary fiscal policy; right

2. Which of the following statements regarding expansionary monetary policy is FALSE?

a.)It makes AD shift to the right.

b.)It decreases consumer willingness to purchase goods, ceteris paribus.

c.)It encourages job creation in the economy.

d.)It increases the money supply.

3. Which of the following statements about the unemployment rate is true?

a.)The unemployment rate is determined through a survey process.

b.)There is no margin of error involved with the unemployment rate.

c.)The unemployment rate is measured by the General Services Administration.

d.)The unemployment rate is a leading indicator.

4. A marginalized worker is ________.

a.)considered part of the labor force

b.)one who has given up looking for work

c.)one who is underemployed

d.)always part of the nonfarm payroll statistic

5. Retail sales are measured by __________.

a.)self-reporting from chains of over 40 stores

b.)self reporting by all retail outlets with over 10 employees

c.)the Bureau of Labor Statistics

d.)the Census Bureau

6. Which of the following is true if retail sales are increasing?

a.)One can expect imports to decrease.

b.)One can expect the economy to grow.

c.)One can expect unemployment to increase.

d.)One can expect interest rates to fall.

7. Which of the following is generally evidence of a country's higher standard of living?

a.)Birth rate increasing

b.)Gender bias in employment increasing

c.)Life expectancy increasing

d.)Infant mortality increasing

8. Which of the following is generally a trait of countries that are developing or underdeveloped?

a.)Greater income disparity

b.)Greater life expectancy

c.)Lower gender bias in employment

d.)Lower birth rate