1. Unit Three Review
Macroeconomics

2. H. Monetary Policy
8. What are the three tools of the Federal Reserve?

3. H. Monetary Policy
6. Who is our current chairman?

4. G. Fiscal Policy
6. What is the difference between a budget deficit and debt?

5. G. Fiscal Policy
5. Define the short-sightedness effect.

6. A. The Business Cycle
2. “A period of economic decline,” is also called…

7. B. GDP
2. What can GDP tell us about a country?

8. D. Inflation
3. Explain cost-push theory.

9. A. The Business Cycle
3. “A period of economic growth,” is also called…

10. B. GDP
7. What are some things that are not measured by GDP?

11. C. Unemployment
4. What kind of unemployment would occur for oil drillers if we move to cleaner energy?

12. A. The Business Cycle
4. The Financial Crisis of 2008 could also be considered as what on the business cycle?

13. B. GDP
1. What is the difference between GDP and GNP?

14. G. Fiscal Policy
1. Define and give an example of a direct tax structure.

15. A. The Business Cycle
1. “The fluctuations of economic activity that an economy experiences over an extended period of time which drives it forward,” is also referred to as…

16. B. GDP
3. Why is the value of final goods included in GDP but the value of intermediate goods excluded?

17. H. Monetary Policy
5. Why are members of the Board of governors given 14 years?

18. B. GDP
4. What are the components of the expenditures approach?

19. H. Monetary Policy
4. When was the Federal Reserve created?

20. B. GDP
5. What are the components of the income approach?

21. B. GDP
6. What does GDP per capita measure?

22. C. Unemployment
1. An engineer who has recently graduated from college and is looking for work.

23. C. Unemployment
2. A banker who has lost her job during a recession.

24. C. Unemployment
3. A worker who has been fired from their retail job because they repeatedly show up late.

25. F. Trade
8. What are exchange rates?

26. C. Unemployment
5. A ski resort worker during the summer.

27. C. Unemployment
6. When ATMs were created, some bank tellers found themselves…

28. F. Trade
5. What are two arguments against protectionist policies?

29. D. Inflation
1. Who benefits the most from higher than expected inflation?

30. D. Inflation
2. Which theory says that when demand for goods exceeds supply, prices are pulled up?

31. D. Inflation
4. Why is it important to maintain your real wage if inflation is occurring?

32. E. Causes and Consequences of Economic Growth
1. What are “secondary effects?”

33. H. Monetary Policy
9. What is the tool the Federal Reserve uses most often?

34. E. Causes and Consequences of Economic Growth
2. Provide four examples of a public good.

35. G. Fiscal Policy
3. What is the tax structure in which the higher the income the less the person pays in taxes?

36. E. Causes and Consequences of Economic Growth
3. What is a free-rider and what problems do they bring?

37. E. Causes and Consequences of Economic Growth
6. What is a “capital investment?”

38. E. Causes and Consequences of Economic Growth
4. Explain what the “tragedy of the commons” is and provide an example.

39. H. Monetary Policy
2. What kind of money do we use in America?

40. E. Causes and Consequences of Economic Growth
5. Provide examples of each of negative and positive externalities.

41. E. Causes and Consequences of Economic Growth
7. What is the difference between an operating budget and a capital budget?

42. F. Trade
1. Why do countries trade?

43. F. Trade
2. Which term refers to when a nation imports more than it exports?

44. F. Trade
3. What is the goal of protectionist policies?

45. H. Monetary Policy
10. What component of GDP is the goal of Monetary Policy to change?

46. F. Trade
4. Name two positives of protectionist policies.

47. F. Trade
6. What is an import quota? And provide one example.

48. F. Trade
7. What is NAFTA? Who is a part of the group? What is the goal?

49. F. Trade
9. How do currencies depreciate or appreciate in relation to other currencies?

50. G. Fiscal Policy
2. In which tax structures do the rich pay the largest nominal amount in taxes?

51. H. Monetary Policy
7. Which district bank president is always on the Federal Open Market Committee?

52. G. Fiscal Policy
4. Provide two examples of mandatory and discretionary spending.

53. H. Monetary Policy
1. What are the three purposes of money?

54. H. Monetary Policy
3. If you cash your bond what happens to the M1 and M2 money supply?