Download Which of the following occurs when real GDP reaches its

1
Created by Boundless
Which of the following occurs when real GDP reaches its maximum, stops rising,
and begins to decline?
A
a trough
B
a contraction
C
an expansion
D
a peak
2
Created by Boundless
Which of the following occurs when real GDP declines and unemployment rises?
A
a peak
B
a trough
C
a contraction
D
an expansion
3
Created by Boundless
According to economist Milton Friedman, why is the term "business cycle" a
misnomer?
A
It should be called the economic cycle.
B
It does not deal with business decisions.
It should be called the consumer cycle.
C
D
4
It is non­cyclical in nature.
Created by Boundless
A statistic that reports the status of the economy a few months in the past is known
as what?
A
a business cycle indicator
B
a lagging indicator
C
a leading indicator
D
an index indicator
5
Created by Boundless
Which of the following is NOT an example of a category of economic indicator?
A
economic summaries
B
indices
C
policy briefings
D
earnings reports
6
Created by Boundless
Which of the following is a useful indicator of the outlook for future jobs?
A
new claims for auto insurance
B
new claims for unemployment insurance
C
new claims for health insurance
D
new claims for liability insurance
7
Created by Boundless
Which of the following is NOT a component of GDP by expenditure?
A
consumption
B
government spending
C
exports
D
per capita income
8
Created by Boundless
Which approach to calculating GDP involves summing the outputs of every class of
enterprise?
9
A
the income approach
B
the product approach
C
the expenditure approach
D
none of these answers
Created by Boundless
Which approach to calculating GDP works on the principle that the incomes of the
productive factors must be equal to the value of their products?
A
the product approach
B
none of these answers
C
the income approach
D
the expenditure approach
10
Created by Boundless
Which approach to calculating GDP works on the principle that all products must
be bought by a consumer?
A
the income approach
B
the expenditure approach
C
the product approach
D
none of these answers
11
Created by Boundless
Full employment is defined as the level of employment rates when there is an
absence of what kind of unemployment?
A
ideal
B
frictional
C
cyclical
D
structural
12
Created by Boundless
What type of unemployment occurs when a labor market is unable to provide jobs
for everyone who wants to work due to a mismatch between workers' skills and
skills needed?
A
cyclical
B
frictional
C
structural
D
ideal
13
Created by Boundless
What type of unemployment occurs during the time period between jobs when a
worker is searching for or transitioning from one job to another?
A
ideal
B
structural
C
frictional
D
cyclical
14
Created by Boundless
Which of the following occurs when productivity decreases and production volume
increases, or vice versa?
A
Increasing returns
B
Surplus value
C
Diminishing returns
D
Multi­factor productivity
15
Created by Boundless
Which of the following is NOT considered to be a critical determinant of productivity
growth?
A
Investment
B
Enterprise
C
Innovation
D
Regulation
16
Created by Boundless
Which of the following occurs when productivity and production volume either both
increase or both decrease?
17
A
Surplus value
B
Multi­factor productivity
C
Increasing returns
D
Diminishing returns
Created by Boundless
Which productivity model is often interpreted as the contribution to economic
growth made by factors such as technical and organizational innovation?
A
Multi­factor productivity
B
Increasing returns
C
GDP per hour worked
D
Diminishing returns
18
Created by Boundless
Which of the following is NOT generally an outlet for the benefits of productivity
growth to be distributed to?
A
Shareholders
B
The media
C
Governments
D
Customers
19
Created by Boundless
What is the phenomenon where government borrowing leads to higher interest
rates that offset the stimulative impact of spending?
A
crowding out
B
price stabilization
C
aggregate demand stimulation
D
20
full employment
Created by Boundless
Which of the following is NOT an objective of fiscal policy?
A
economic growth
B
full employment
C
price stability
D
lower taxes
21
Created by Boundless
What does Keynesian economics suggest to be the best ways to stimulate
aggregate demand?
A
decreasing government spending and decreasing tax
rates
B
decreasing government spending and increasing tax
rates
C
increasing government spending and decreasing tax
rates
D
increasing government spending and increasing tax rates
22
Created by Boundless
What is the theoretical position which argues that crowding out completely negates
any fiscal stimulus?
A
The Keynesian View
B
The Treasury View
C
The Stimulus View
D
The Austrian View
23
Created by Boundless
What type of policy will increase interest rates or reduce the money supply, making
money more difficult to acquire and, thus, reducing economic activity in an
economy?
A
expansionary
B
contractionary
C
reactionary
D
compulsory
24
Created by Boundless
What institution is empowered to exercise monetary policy in the U.S.?
25
A
the Executive Branch
B
the Federal Reserve
C
the Judicial Branch
D
the Legislative Branch
Created by Boundless
What type of policy seeks to lower interest rates or increase the money supply,
allowing money to be acquired more easily, increasing economic activity in an
economy?
A
contractionary
B
reactionary
C
compulsory
D
expansionary
26
Created by Boundless
What is the primary tool of monetary policy?
A
monetary base operations
B
interest rate operations
C
reserve requirement operations
D
open market operations