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Economics IC Unit Test Review: Macroeconomics

Hannah Bell avatar Hannah Bell
19 August 2023
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15 test answers

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question
Which best describes the economic impact of defaulting on bank loans?
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The economy suffers because banks have less money to loan to others.
question
The most common measure of inflation is a statistic called the
answer
consumer price index
question
What role does the Federal Reserve play? Check all that apply.
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Regulate the banking industry Loan money to banks Transfers any profits to the Treasury
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What are the signs of low inflation? Check all that apply.
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Demand steadily rises. Prices continue to increase. The economy grows in a healthy way.
question
What is the difference between inflation and deflation?
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Inflation can result from rising demand and reduces the value of money. Deflation can result from falling demand and boosts the value of money.
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Which statement best describes the main cause of the 2008 housing market crash in the United States?
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Many people could not make home payments during a weak economy.
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The exchange of factors of production for income occurs in the _________ market.
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factor
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What decisions does the business cycle help businesses make? Check all that apply.
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whether to grow or shrink the business whether to increase or decrease production whether to hire or lay off workers whether to invest or save money
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What is the name of the period when an economy begins to shrink?
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recession
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In the circular flow model, factors of production flow to firms. Which of the following are the primary factors of production? Check all that apply.
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labor capital land
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Does a depression always follow a recession?
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No, a depression is indicated when the recession is exceptionally long.
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What term is used in macroeconomics to describe the total supply and the total demand?
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aggregate
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How do bank loans help the nation's economy?
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They allow businesses to expand and improve.
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Which is an example of how a denomination is divisible?
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An American dollar is equal to four quarters.
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As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Check all that apply.
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cyclically unemployed unemployed