SLO Macroeconomics
The United States' economy is considered to be at full employment when: A) 4-5 percent of the labor force is unemployed B) 90 percent of the total population is employed. C)90 percent of the labor force is unemployed. D)100 percent of the labor force is employed.
A) 4-5 percent of the labor force is unemployed
An increase in the money supply will: A) lower interest rates and increase the equilibrium GDP B) lower interest rates and lower the equilibrium GDP. C) increase interest rates and increase the equilibrium GDP. D) increase interest rates and lower the equilibrium GDP.
A) lower interest rates and increase the equilibrium GDP
Discretionary fiscal policy will stabilize the economy most when: A) the budget is balanced each year. B) deficits are incurred during periods of inflation and surpluses during recessions. C) deficits are incurred during recessions and surpluses during periods of inflation. D) budget surpluses are continuously incurred.
A) the budget is balanced each year.
Graphically, the full-employment, low-inflation, rapid-growth economy of the last half of the 1990s is depicted by a: A) rightward shift of the aggregate demand curve along a fixed aggregate supply curve. B) rightward shift of the aggregate supply curve along a fixed aggregate demand curve. C) rightward shift of the aggregate demand curve and a rightward shift of the aggregate supply curve. D) Leftward shift of the aggregate demand curve and a leftward shift of the aggregate supply curve.
C) rightward shift of the aggregate demand curve and a rightward shift of the aggregate supply curve.
The nation's Gross Domestic Product (GDP) is the: A) total national income minus taxes paid. B) monetary value of all resources used during a given year. C) monetary value of all goods and services consumed within that nation in a particular year. D) monetary value of all final goods and services produced within that nation in a particular year.
D) monetary value of all final goods and services produced within that nation in a particular year.