1. Fiscal policy refers to the control of
2. Which of the following is a contractionary economic policy?
3. If the rate of growth in an economy is 2 percent, inflation is 3 percent, and the nominal rate of interest is 10 percent, what is the real rate of interest?
4. Which of the following is an example of structural unemployment?
5. Which of the following would lead to a decrease in aggregate demand?
6. The market value of all final goods and services produced in the economy in a given year is the
7. Which of these events would likely reduce consumer spending?
8. Which of the following would expand aggregate demand according to Keynesians (demand-side economists), but stimulate aggregate supply according to supply-siders?
9. Which of the following would cause the unemployment rate to increase?
I. A man who quits his job to spend more time with his children
II. A woman who has not looked for a job in two years and begins looking again
III. A woman who quits her job and begins looking for a new job in another city
10. The money supply in the United States is controlled by
11. According to Keynesian theory, which combination of policies below is consistent (that is, the policies would tend to reinforce instead of offset each other)?
12. Which of the following would be the most likely to cause cost-push inflation?
13. The discount rate is the interest rate at which
14. An economy is experiencing low rates of unemployment with high inflation. An appropriate mix of government policies might be to
15. If a nation's depreciation exceeds its gross investment, we can say that