Exam 2: Economics: The Framework for Business

The sum of all the money borrowed by the government over the years and not yet repaid is the _________.

_________ is a period of robust economic growth and high employment.

The Fed requires that all of its member banks hold funds called "reserves," equal to a stated percentage of the deposits held by their customers. This percentage is called the reserve requirement.

Which of the following is a negative feature of socialist economic systems?

Denise is a hard worker, but she has always had differences with her boss, AngelA)Angela has recently become more demanding and is often unwilling to provide clarification on project requirements. After too many long working days with little or no job satisfaction, Denise walked into Angela's office and submitted her resignation. Denise knows that her résumé is strong and feels confident she will find another joB)Denise is now facing _____ unemployment.

The economy of Suielevia is under severe financial distress. Over the last few months, the economy has gradually picked up and the employment levels are slowly rising back to the normal levels. The consumers are also beginning to engage in regular buying activities. In this case, the economy of Suielevia is currently in the _____ phase of its business cycle.

Gross Domestic Product measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.

The sum of all the money borrowed by the government over the years and not yet repaid is the _____.

_____ measures the change over time in weighted-average wholesale prices, or the prices that businesses pay each other for goods and services.

In a particular state, many commercial banks struggle to lend money to the borrowers due to lack of money supply. The Fed buys securities from these banks and this creates a smooth flow of money for the banks to conduct their transactions. In this case, which of the following tools has the Fed most likely used to control the money supply?

If spending is lower than revenue, the government incurs a budget deficit and must borrow money to cover the shortfall.

Identify a true statement about the economy of the United States.

A capitalist system depends on fair competition among businesses to:

In the context of fiscal strategies, most economists agree that higher taxes can boost the economy by leaving more money with the government to spend during an economic crisis.

An economy is one that includes a financial system and excludes a social system.

Which of the following tools does the Fed use to help protect depositors who may want to withdraw their money without notice?

Identify the tool that the Fed most frequently uses to expand and contract the money supply in the economy.

The discount rate is the interest rate the Fed charges on its loans to commercial banks.

Identify a true statement about types of money supply.

Macroeconomics is primarily engaged in the study of: