1.What are the functions of money?
- What happens when the Federal Reserve buys bonds? Sells bonds?
- What can you conclude from the following: an increase in real gross domestic product (GDP), falling unemployment, and increasing inflation?
- In what phase of the business cycle will discount rates be lowered?
- What is a progressive tax? Give an example.
- What type of tax is a sales tax?
- What are regressive taxes? Give an example.
- What are the tools used by the Federal Reserve to control the economy?
- What are the tools used by the federal govt to control the economy?
- What are the economic goals of the government?
- If taxes are increased, what will happen to AD and GDP?
- How is national debt different than government deficits?
- What is a budget surplus?
- Draw and correctly label a production possibility curve for computers (on the vertical axis) and pizzas (on the horizontal axis). You do not need to number the axis or plot specific points.
- Draw and correctly label a supply and demand graph illustrating the current market for gasoline. Label the equilibrium price level as Pe and the equilibrium quantity as Qe.
- Draw and label the four phases of the business cycle, including labeling the vertical and horizontal axis.
- Draw and correctly label an aggregate demand and aggregate supply graph. Label the equilibrium price level as PLe and the equilibrium real GDP output as Qe.
Sample Solution
