FTCE SOCIAL SCIENCE 6-12 EXAMPREP 2026
COMPLETE QUESTIONS AND VERIFIED
ANSWERS GUARANTEED TO PASS
◉ Macroeconomics. Answer: The study of economy as a whole
◉ Focus of Macroeconomics. Answer: 1. National Output (measured
by GDP)
2. The Role of Inflation
3. Unemployment
◉ National Output: GDP. Answer: The total money value of final
goods & services that a country produces over a given period of time
(usually 1 year)
◉ Expenditures Approach. Answer: GDP = C(consumption) +
I(investment) + G(gov't goods) + NX(net exports)
◉ 4 Phases of Economic Cycle. Answer: 1. BOOM (expansion of
economy = prosperity)
2. RECESSION (contraction with decline in GDP/rise in
unemployment)
, 3. TROUGH (turning point; slide from mean to lowest point in
recession)
4. RECOVERY (rise from trough back to the mean - lessening
unemployment & rising prices)
◉ 3 Types of Unemployment. Answer: 1. FRICTIONAL (workers
voluntarily move from one job to another with time in between)
2. CYCLICAL (economy falls as the result of a recession)
3. FUNCTIONAL (more workers than available jobs; skills not in
demand/don't match industry needs) \
◉ Fiscal Policy. Answer: 1. EXPANSIONARY (raise gov't spending
and/or decrease taxes in order to increase spending)
2. CONTRADICTORY (decreases gov't spending & increase taxes in
order to decrease spending
◉ Monetary Policy. Answer: Federal Reserve System (FED) changes
level of money in banking system (influences the availability and
cost of both money & credit in the economy)
◉ 3 Economic Tools. Answer: 1. Open-Market Operations
2. Reserve Requirements
3. Discount Rates
COMPLETE QUESTIONS AND VERIFIED
ANSWERS GUARANTEED TO PASS
◉ Macroeconomics. Answer: The study of economy as a whole
◉ Focus of Macroeconomics. Answer: 1. National Output (measured
by GDP)
2. The Role of Inflation
3. Unemployment
◉ National Output: GDP. Answer: The total money value of final
goods & services that a country produces over a given period of time
(usually 1 year)
◉ Expenditures Approach. Answer: GDP = C(consumption) +
I(investment) + G(gov't goods) + NX(net exports)
◉ 4 Phases of Economic Cycle. Answer: 1. BOOM (expansion of
economy = prosperity)
2. RECESSION (contraction with decline in GDP/rise in
unemployment)
, 3. TROUGH (turning point; slide from mean to lowest point in
recession)
4. RECOVERY (rise from trough back to the mean - lessening
unemployment & rising prices)
◉ 3 Types of Unemployment. Answer: 1. FRICTIONAL (workers
voluntarily move from one job to another with time in between)
2. CYCLICAL (economy falls as the result of a recession)
3. FUNCTIONAL (more workers than available jobs; skills not in
demand/don't match industry needs) \
◉ Fiscal Policy. Answer: 1. EXPANSIONARY (raise gov't spending
and/or decrease taxes in order to increase spending)
2. CONTRADICTORY (decreases gov't spending & increase taxes in
order to decrease spending
◉ Monetary Policy. Answer: Federal Reserve System (FED) changes
level of money in banking system (influences the availability and
cost of both money & credit in the economy)
◉ 3 Economic Tools. Answer: 1. Open-Market Operations
2. Reserve Requirements
3. Discount Rates
