Macro Economic questions Part III

Transcription

1 Macro Economic questions Part III

2 Question If U.S. real GDP for 2011 was $15.29 trillion. U.S. real GDP for 2010 was $15.03 trillion What was the economic growth from 2010 to 2011?

3 Answer If U.S. real GDP for 2011 was $15.29 trillion. U.S. real GDP for 2010 was $15.03 trillion What was the economic growth from 2010 to 2011? GDP Year 2 GDP Year 1 GDP Year 1 X X 100 = 1.7 %

4 Question Market Basket of Goods Item Quantity Year 1 Cost Year 2 Cost 300 gallons milk $360 $ paperback books $250 $275 2 chairs $220 $200 Total Cost $830 $1,015 a. Calculate the Year 2 CPI b. Calculate the Inflation Rate

5 Answer Market Basket of Goods Item Quantity Year 1 Cost Year 2 Cost 300 gallons milk $360 $ paperback books $250 $275 2 chairs $220 $200 Total Cost $830 $1,015 a. Calculate the Year 2 CPI b. Calculate the Inflation Rate Cost Year 2 Cost Year 1 X X 100 = 1.22 x 100 = 122

6 Answer Market Basket of Goods Item Quantity Year 1 Cost Year 2 Cost 300 gallons milk $360 $ paperback books $250 $275 2 chairs $220 $200 Total Cost $830 $1,015 a. Calculate the Year 2 CPI b. Calculate the Inflation Rate CPI Year 2 CPI Year 1 CPI Year X 100 = 22% X 100

7 Question June 2014, there were 142,415,000 people employed in the United States. There were 12,749,000 people who were counted as unemployed. What was the unemployment rate?

8 AnswerJune 2014, there were 142,415,000 people employed in the United States. There were 12,749,000 people who were counted as unemployed. What was the unemployment rate? Unemployed Total Work Force X 100 Total Work Force = Employed + Unemployed 12,749 = X , ,749 = 12,749 X 100 = 155,164 = X 100 = 8.2 %

9 Question Fiscal policy is defined as Congress attempting to stabilize the economy by a. controlling the money supply b. adjusting government spending and taxing c. buying and selling securities d. growing the national economy

10 Answer Fiscal policy is defined as Congress attempting to stabilize the economy by a. controlling the money supply b. adjusting government spending and taxing c. buying and selling securities d. growing the national economy

11 Question If the economy is in a expansion, appropriate fiscal policy actions would be a. decreasing taxes and raising government spending b. increasing taxes and raising government spending c. decreasing taxes and cutting government spending d. increasing taxes and cutting government spending

12 Answer If the economy is in a expansion, appropriate fiscal policy actions would be a. decreasing taxes and raising government spending b. increasing taxes and raising government spending c. decreasing taxes and cutting government spending d. increasing taxes and cutting government spending

13 Question If the U.S. government is trying to fight high inflation with fiscal policy, it will probably a. decrease taxes b. increase taxes c. lower prices d. increase interest rates

14 Answer If the U.S. government is trying to fight high inflation with fiscal policy, it will probably a. decrease taxes b. increase taxes c. lower prices d. increase interest rates

15 Question If the following headlines appeared in a newspaper, which most clearly represents a macroeconomic issue? a. Fed Raises Interest Rates b. Auto Dealership to Cut Prices c. Brazilian Coffee Bean Crop Falls by 10 Percent d. United Workers Union to Strike April 15

16 Answer If the following headlines appeared in a newspaper, which most clearly represents a macroeconomic issue? a. Fed Raises Interest Rates b. Auto Dealership to Cut Prices c. Brazilian Coffee Bean Crop Falls by 10 Percent d. United Workers Union to Strike April 15

17 Question Real GDP If the U.S. economy is operating at point X on the business cycle, an appropriate tool of fiscal policy would be to a. increase taxes b. raise the reserve requirement c. increase government spending d. lower the discount rate Time

18 Answer Real GDP If the U.S. economy is operating at point X on the business cycle, an appropriate tool of fiscal policy would be to a. increase taxes b. raise the reserve requirement c. increase government spending d. lower the discount rate Time

19 Question Which combination of fiscal policy tools will likely serve to curb inflation? a. Lower the reserve requirement Lower taxes c. Increase taxes Decrease government spending b. Increase government spending Lower taxes d. Increase government spending Increase taxes

20 Answer Which combination of fiscal policy tools will likely serve to curb inflation? a. Lower the reserve requirement Lower taxes c. Increase taxes Decrease government spending b. Increase government spending Lower taxes d. Increase government spending Increase taxes

21 Question Which combination of fiscal policy tools will serve to promote full employment and economic growth? a. Lower the reserve requirement Lower taxes c. Increase taxes Decrease government spending b. Increase government spending Lower taxes d. Increase government spending Increase taxes

22 Answer Which combination of fiscal policy tools will serve to promote full employment and economic growth? a. Lower the reserve requirement Lower taxes c. Increase taxes Decrease government spending b. Increase government spending Lower taxes d. Increase government spending Increase taxes

23 Question When a nation spends (expenditures) more money than it has collected in taxes (revenue), this considered a a. national debt b. budget surplus c. deficit spending d. balanced budget

24 Answer When a nation spends (expenditures) more money than it has collected in taxes (revenue), this considered a a. national debt b. budget surplus c. deficit spending d. balanced budget

25 Question Which of the following would result in a increase in consumer and business spending? a. Increasing income taxes b. Decreasing the interest rate c. Increasing the reserve requirement d. Decreasing government spending

26 Answer Which of the following would result in a increase in consumer and business spending? a. Increasing income taxes b. Decreasing the interest rate c. Increasing the reserve requirement d. Decreasing government spending

27 Question Real GDP If the U.S. economy is operating at point X on the business cycle, an appropriate tool of monetary policy would be to a. decrease taxes b. lower the reserve requirement c. sell bonds on the open market d. lower the discount rate Time

28 Answer Real GDP If the U.S. economy is operating at point X on the business cycle, an appropriate tool of monetary policy would be to a. decrease taxes b. lower the reserve requirement c. sell bonds on the open market d. lower the discount rate Time