1. The Federal Reserve plans to sell their securities/bonds in the OMO. What will this do for the supply of money?

Decrease the money supply to stop consumers and investors from spending it.

Increase the money supply so government only can spend it.

Decrease the money supply to stop only the government from spending it.

Increase the money supply so consumers and investors can spend it.

2.What is another name for the Federal Reserve?

Local Bank

Financial Bank

Central Bank

Decentral Bank

3.What are the four components of GDP?*

Consumption + Inflation + Government + Net Exports

Consumption + Interest + Government + Exports

Consumption + Investments + Government + Net Exports

Consumption + Investments + Government + Imports

4.Consumers are not willing to spend their money during a recession - but as long as the Government spends money then GDP will increase.

true or false

5.Think about the circular flow chart: what taxes are included in FICA?

Social Security and Medicare

SPLOST and property taxes

Income taxes only

Property and sales taxes

6.Income tax is an example of

Progressive taxes

Regressive taxes

Proportional taxes

Excise taxes

7.The Federal Reserve plans to buy their securities/bonds in the OMO. What will this do for the supply of money?

Decrease the money supply to stop only the government from spending it.

Increase the money supply so consumers and investors can spend it.

Increase the money supply so government only can spend it.

Decrease the money supply to stop consumers and investors from spending it.

8.FICA is an example of

Proportional taxes

Progressive taxes

Regressive taxes

Excise taxes

9.Sales/excise taxes are an example of

Proportional taxes

Property taxes

Progressive taxes

Regressive taxes

10.What is a deficit?

Donating more money than you make

Spending more money than you make

Saving more money than you make

Loaning more money than you make

11.What is debt?

Money you owe over a period of time

Money you donate to a charity

Money you earn in a savings account

Money you owe on a one time loan

12.In a recession

GDP is decreasing and unemployment is decreasing

GDP is decreasing and unemployment is increasing

GDP is increasing and unemployment is decreasing

GDP is increasing and unemployment is increasing

13.CPI, market basket of goods, Consumer price index - what is the purpose of all of these?

To measure how many people are using shopping carts

To measure how much debt the government owes

To measure how much inflation has changed

To measure how many loans people can handle

14.What is the difference between "nominal GDP" and "real GDP"?

Nominal GDP includes inflation, Real GDP excludes inflation

Nominal GDP excludes inflation, Real GDP includes inflation

15.What does "M1" mean for money?

Money you spend

Money you owe

Money you earn

Money you save

16.What does "M2" mean for money?

Money you spend

Money you owe

Money you save

Money you earn

17.Storage of money refers to

How easy I can spend my money in a store

How long money can last over time

How much money I have in my bank account

How much my money is worth

18.Structural UE is based on

Scarcity of jobs, recession of business, or seasonal work

Skills set that people lack and can't keep up with technological changes on the job

Choice to leave one job for another or a HS/College senior about to graduate

New roads, bridges, parks and schools that government is spending money on

19.Measure of money refers to ?

How much my money is worth

How easy I can spend my money in a store

How much money I have in my bank account

How long money can last over time

20.Cyclical UE is based on?

Skills set that people lack and can't keep up with technological changes on the job

Scarcity of jobs, recession of business, or seasonal work

New roads, bridges, parks and schools that government is spending money on

Choice to leave one job for another or a HS/College senior about to graduate

21.Exchange of money refers to?

How easy I can spend my money in a store

How much money I have in my bank account

How much my money is worth

How long money can last over time

22.Frictional UE is based on?

Skills set that people lack and can't keep up with technological changes on the job

Choice to leave one job for another or a HS/College senior about to graduate

Scarcity of jobs, recession of business, or seasonal work

New roads, bridges, parks and schools that government is spending money on

23.Who suffers the most during inflation?

People with personal loans with adjustable interest rates

Banks handing out adjustable interest rate loans

Retired people receiving a fixed pension

People paying back student loans with fixed interest rates

24.What is the benefit of a tight money policy?

Consumers will not spend money, help the inflation rate, and decrease GDP

Consumers will spend money, help the recession, and increase GDP

25.What is the benefit of a loose money policy?

Consumers will spend money, help the recession, and increase GDP

Consumers will not spend money, help the inflation rate, and decrease GDP

26.n the circular flow chart, money is described as?

expenditures.

revenue.

income.

liquid capital.

all of the above because they are all different names for money.

none of the above because there's only one name for money.

27.When economists analyze aggregate supply and aggregate demand, they look for changes in?

inflation, recession, employment, and economic growth.

hospital care, ambulances, triage nurses, and surgeons.

endorsements, goal-setting, storage units, and cleaning services.

recommendations, negotiations, decisions, and adoptions.

28.If you worked full or part time last week, are on vacation from your job, or on sick leave, then you are considered?

employed.

unemployed.

discouraged.

out of the labor force.

29.Business cycle phases are?

inflation, recession, unemployment, economic growth.

peak, recession, trough, recovery.

unemployment, discourage, employment, underemployment.

30.The Federal Reserve controls the money supply through their Monetary Policies. These policies are?

unemployment, recession, and inflation.

GDP, aggregate supply, and underemployment.

open market operations, discount rate, and reserved requirements.