Economics Principles & Practices

Chapter 16: Achieving Economic Stability

Self-Check Quizzes

1
The ____________ is the sum of the monthly inflation and unemployment rates.
A)misery index
B)composite rate
C)despair rate
D)composite index
2
A period of stagnant growth combined with inflation is known as ____________.
A)stagnation
B)stagflation
C)hyperinflation
D)megaflation
3
The total value of goods and services that all firms would produce in a specific period of time at various price levels is called ____________.
A)aggregate supply
B)aggregate demand
C)cumulative goods
D)cumulative services
4
An increase in saving will cause the aggregate demand curve to __________.
A)stay the same
B)shift to the right
C)shift to the left
D)curve upward
5
The aggregate demand curve has a __________ slope.
A)vertical
B)horizontal
C)positive
D)negative
6
____________ policies are federal policies designed to increase or decrease total demand in the economy by shifting the aggregate demand curve to the right or to the left.
A)Short-run
B)Long-run
C)Supply-side
D)Demand-side
7
The use of government spending and taxing to influence economic activity is called __________ policy.
A)monetary
B)fiscal
C)structural
D)passive
8
According to Keynesian economics, only the _________ sector is big enough to step in and offset changes in investment sector spending.
A)consumer
B)government
C)investment
D)foreign trade
9
The _____________ like unemployment insurance and Social Security protect consumers and the economy in general if economic conditions worsen.
A)automatic stabilizers
B)automatic generators
C)mechanized stabilitators
D)mechanized generators
10
____________ economic policies grew out of the unemployment and other problems that occurred during the Great Depression of the 1930s.
A)Fiscal
B)Discretionary
C)Supply-side
D)Demand-side
11
The three-member group that reports on economic developments and proposes strategies to the president is called the ____________.
A)Council of Economic Advisers
B)Cabinet
C)Council of Economic Consultants
D)Whip
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