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MTLE Social Studies: Macroeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Decreasing personal tax rates through fiscal policy will most likely result in:

Question 2 2. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 3 3. The rate banks pay to borrow money from the Fed is called the _____ rate.

Question 4 4. Which of the following is true about fiscal policy?

Question 5 5. Which of the following is the best explanation of deflation?

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Question 6 6. What economic problem occurred in 2008 that led to the passage of the Dodd-Frank Act?

Question 7 7. Which of the following is the best explanation of the difference between a recession and depression in a business cycle?

Question 8 8. What's the name of the model economists use to explain economic fluctuations in a market economy?

Question 9 9. When demand exceeds supply, what type of inflation has occurred?

Question 10 10. According to this chart, what was the unemployment rate during the peak of the business cycle?

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Question 11 11. What is inflation?

Question 12 12. Which of the following is NOT a goal of the U.S. government that can be accomplished by fiscal policy?

Question 13 13. If the government wants to pull the country out of a period of heavy recession they should do all of the following EXCEPT:

Question 14 14. What do you call the period in the business cycle where the economy is bouncing off the trough?

Question 15 15. Economic regulators are responsible for overseeing which of the following industries?

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Question 16 16. What happens to real GDP, prices and unemployment at the peak of a business cycle?

Question 17 17. What are impacts of unemployment?

Question 18 18. Which of the following is NOT true about how the government protects the U.S. economy?

Question 19 19. For three quarters in a row, economic growth increased by 3%, 5% and 7%. As it was close to the election, the government did not try to stabilize the growth. In the last quarter of the year, the economy drastically fell by 5%. Which of the following best describes such an occurrence?

Question 20 20. Why might a government decide to grant a monopoly in a heavily regulated industry?

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Question 21 21. Which one is a type of inflation?

Question 22 22. The method of affecting the money supply that is used the least by the Fed is

Question 23 23. The Federal Reserve controls the growth rate of the money supply through _____.

Question 24 24. What happens with the supply of money during deflation?

Question 25 25. What is one effect of inflation?

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Question 26 26. In which of the following scenarios would it be a good idea for the government to implement a deflationary fiscal policy?

Question 27 27. What is the government definition of 'work force'?

Question 28 28. What are the primary goals of fiscal and monetary policy?

Question 29 29. Which of the following is the best explanation of a deflationary spiral?

Question 30 30. Jane is a presidential adviser in the time of the 2008 Global Economic Crisis. The president is asking her if he should use fiscal policy in an attempt to combat the effects of the crisis. Why does she likely tell him yes?

MTLE Social Studies: Macroeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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