Unit Test Answers

"Meeting the spending targets in this budget meant some very difficult choices."President Barack Obama,2012 Budget Message of the President

What is a primary economic goal of governments?

The Fed’s use of open market operations affects banks’

An increase in gross domestic product (GDP) is a sign that a country’s economy is

Rules ensuring that businesses offer safe products to consumers are part of a nation's

This circle graph shows historical information about Bolivia’s workforce. What does the graph indicate about Bolivia’s labor force in 2010?

When the Fed adjusts its interest rate, it directly influences consumer

Which best describes a central bank's primary goals?

Which statements describe how the Fed responds to high inflation? Check all that apply.It charges banks more interest.It pays banks less interest.It sells more securities.It decreases the money supply.It increases the money supply.

A flow chart shows an aspect of fiscal policy. Money goes from the government, to household, and to firms.

In a free enterprise system, governments address public problems through policy to ensure that

Read the scenario.The citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. At the same time, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP.

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A diagram shows that taxes go into the government, which then go into spending.

Which of the following statements most accurately describes the federal government and its employees?

Why does the Fed pay interest to banks?

The map shows GDP per capita in the United States for a given year.What conclusion can someone draw from the map?

What gives the US government the power to collect taxes?

Which statement best describes the likely effects of an expansionary fiscal policy?

Which of these effects of expansionary spending would a government most want to avoid?

A line graph titled Number of Employed workers in nonfarm jobs, 2008 to 2013 shows years on the x axis from 2008 to 2009 and millions of employed workers on the y axis, from 105 to 117. Line starts at 116 on February 1, 2008, to 112 on November 1, 2008, to 107 on August 1, 2009.

Which best describes a central bank's primary role?

The circle graph shows information about Germany’s labor force in 2011.Which statement most accurately describes Germany’s labor force?

Gino is writing a paper about the effects of fiscal policies on the economy. Gino is describing a fiscal policy that aims to improve inflation.How does the policy that Gino is describing most likely affect interest rates and unemployment?

Which of these best describes income tax?