Survey of Economics Univesity of Akron practice test.
Period of time in which there is continuous growth in the economy.
Period of time in which there are two phases, which are: peak and depression.
Economic fluctuations of real GDP along a long-term growth trend.
Period of time in which a business is established and ceases operations.
Recovery, followed by depression, and then recession followed by a peak.
Recovery, followed by a recession, and then peak followed by depression.
Peak, then a depression, followed by recovery, and then recession
Peak, then a recession, followed by depression, and finally, recovery.
One year.
Six months.
Three months.
One month.
10%
12%
20%
90%
People who are out of work and don’t have the required job skills.
Short periods of unemployment needed to best match right jobs to the right job seekers.
People who are unemployed during certain seasons of the year
Unemployment related to the ups and downs of the business cycle
Cyclical unemployment.
Structural unemployment.
Permanent unemployment.
Frictional unemployment.
Seasonal unemployment.
Frictional unemployment.
Structural unemployment.
Cyclical unemployment
Prices of every single product in the economy.
Homes, autos and basic resources.
The general and average price level of products.
None of the above.
The GDP deflator.
The consumer price index.
The price level.
Inflation.
The first year that price data are available.
Any year in which inflation was higher than 5 percent.
The most recent year in which the business cycle hit the trough.
A specifically chosen reference year.
Currently $130.
130 percent more in Year X than in the base year.
130 percent more in the base year than in Year X.
30 percent more in Year X than in the base year.
The Smith’s nominal income and real income have both fallen.
The Smith’s nominal income and real income have both risen.
The Smith’s nominal income has increased and their real income has fallen.
The Smith’s nominal income has decreased and their real income has risen.
Shows the level of real GDP purchased in the economy at different possible price levels during a period of time.
Shows the level of real GDP supplied in the economy at different possible price levels during a period of time.
Shifts to the left whenever there is an increase in aggregate expenditures.
Slopes upward.
Real balance or wealth effect.
Interest-rate effect.
Foreign trade effect.
All of the above are reasons.
Real balance effect.
Interest rate effect.
Foreign purchases effect.
Net export effect.
Shows the level of real GDP produced in the economy at different possible price levels during a period of time.
Is relatively flat in the beginning and then gets steeper
Is upward-sloping
All of the above.
Uses the federal government's powers of spending and taxation to affect employment, the price level, and GDP
Can affect employment and prices, but not the level of GDP
Can affect employment and the level of GDP, but not the price level
Uses the federal government's powers over the money supply to affect employment, the price level, and GDP
$160 million
$200 million
$1000 million
$1250 million
Declines by $200 million
Increases by $200 million
Increases by $800 million
Increases by $1000 million
Increase the growth of the money supply.
Manipulate aggregate supply by a decreasing taxes and reducing government regulation.
Wait until natural market forces establish full employment.
Change government spending or taxes to affect aggregate demand
To provide a double coincidence of wants
To act as a medium of exchange
To act as a unit of account
To act as a store of value
Legal tender
Commodity money
Guaranteed to be a good store of wealth
Convertible to a valuable commodity
Coins, currency, checkable deposits and traveler’s checks
Coins, currency, checkable deposits, traveler’s checks and savings accounts
Coins, currency, checkable deposits and traveler’s checks and small time deposits
It is the same as M2 and M3
The President’s Council of Economic Advisors.
Board of Governors.
Federal Open Market Committee.
12 Federal Reserve District Banks.
To control the money supply.
To lend money to households.
To supervise and regulate banks.
To aid in the check clearing process.
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