HiSET: Economic & Fiscal Policy of American Government 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!

Page 1

Question 1 1. Which of the following is the BEST explanation of how a government intervenes in an economy utilizing fiscal policy?

Question 2 2. What happens to real GDP, prices and unemployment at the peak of a business cycle?

Question 3 3. Which of the following is FALSE regarding the Federal Reserve?

Question 4 4. What happens to economic output as measured by GDP during a recession?

Question 5 5. How does a government implement a contractionary fiscal policy?

Page 2

Question 6 6. Which of the following is the BEST explanation of monetary policy?

Question 7 7. According to this chart, what was the unemployment rate during the peak of the business cycle?

Question 8 8. The Federal Reserve achieves its monetary goals by doing which of the following?

Question 9 9. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 10 10. Which of the following are the two phases and the two turning points of the business cycle?

Page 3

Question 11 11. What is the cyclical growth and decline of an economy called?

Question 12 12. If the government wants to increase the rate of economic growth, what type of monetary policy will it implement?

Question 13 13. Why does the Federal Reserve require commercial banks to maintain reserves with them?

Question 14 14. Which of the following is an inaccurate description of The Federal Reserve?

Question 15 15. What are some of the objectives of the Fed?

HiSET: Economic & Fiscal Policy of American Government Chapter 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!

HiSET Social Studies: Prep and Practice  /  History Courses
Support