1. Which of the following is a contractionary economic policy?
2. The money supply in the United States is controlled by
3. If a nation's depreciation exceeds its gross investment, we can say that
4. The market value of all final goods and services produced in the economy in a given year is the
5. Fiscal policy refers to the control of
6. Which of these events would likely reduce consumer spending?
7. According to Keynesian theory, which combination of policies below is consistent (that is, the policies would tend to reinforce instead of offset each other)?
8. 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?
9. The discount rate is the interest rate at which
10. 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
11. Which of the following would expand aggregate demand according to Keynesians (demand-side economists), but stimulate aggregate supply according to supply-siders?
12. Which of the following would lead to a decrease in aggregate demand?
13. Which of the following is an example of structural unemployment?
14. Which of the following would be the most likely to cause cost-push inflation?
15. An economy is experiencing low rates of unemployment with high inflation. An appropriate mix of government policies might be to