JMU Macro 200 Final Exam questions
well answered already passed
Expansionary Policy - correct answer ✔✔The Federal Reserves policy of decreasing interest
rates to increase GDP
Inflation Targeting - correct answer ✔✔A central bank publicly sets an explicit target for the
inflation rate over time
Contraction Monetary Policy - correct answer ✔✔The Federal Reserves Policy of increasing
interest rates to reduce inflation
2 Main Monetary Policy Targets - correct answer ✔✔Money supply and interest rate
Variables That Shift Aggregate Demand - correct answer ✔✔Changes in government policies,
changes in the expectation of households and firms, and changes in foreign variables
Factors That Cause Recession - correct answer ✔✔Collapse of housing bubble, financial crisis,
and rapid increase in price of oil
Fiscal Policy - correct answer ✔✔Refers only to actions of the federal government; state/local
governments are not intended to affect the economy
Automatic Stabilizers - correct answer ✔✔Government spending and taxes that automatically
increase and decrease along with the business cycle
, Discretionary Fiscal Policy - correct answer ✔✔The government takes actions to change
spending or taxes
Federal Government Purchase - correct answer ✔✔When the government purchases and
aircraft carrier or the services of the FBI, it receives a good or service in return
Federal Government Expendentures - correct answer ✔✔Include purchases as well a federal
government spending (social security payments)
3 Categories of federal government expendentures - correct answer ✔✔Interest on national
debt, grants to state or local governments, and transfer payments
Risk - correct answer ✔✔A difference between two yeilds is the level of what
90% - correct answer ✔✔At what percentage does debt become a problem
The Business Cycle - correct answer ✔✔This cycle is not uniform; expansion and recession are
not the same length, but every period of recession is followed by expansion
Examples of Captial - correct answer ✔✔Computer, factory building, machine tools,
warehouses, and trucks
Factors in Raising Living Standards - correct answer ✔✔Education, technology, and the changing
of attitudes,
3 Main Sources of Technological Change - correct answer ✔✔Better manufacturing equipment,
increase in human capital, better means of organizing and managing production
Countries are Poor because - correct answer ✔✔Climate, geography, location
well answered already passed
Expansionary Policy - correct answer ✔✔The Federal Reserves policy of decreasing interest
rates to increase GDP
Inflation Targeting - correct answer ✔✔A central bank publicly sets an explicit target for the
inflation rate over time
Contraction Monetary Policy - correct answer ✔✔The Federal Reserves Policy of increasing
interest rates to reduce inflation
2 Main Monetary Policy Targets - correct answer ✔✔Money supply and interest rate
Variables That Shift Aggregate Demand - correct answer ✔✔Changes in government policies,
changes in the expectation of households and firms, and changes in foreign variables
Factors That Cause Recession - correct answer ✔✔Collapse of housing bubble, financial crisis,
and rapid increase in price of oil
Fiscal Policy - correct answer ✔✔Refers only to actions of the federal government; state/local
governments are not intended to affect the economy
Automatic Stabilizers - correct answer ✔✔Government spending and taxes that automatically
increase and decrease along with the business cycle
, Discretionary Fiscal Policy - correct answer ✔✔The government takes actions to change
spending or taxes
Federal Government Purchase - correct answer ✔✔When the government purchases and
aircraft carrier or the services of the FBI, it receives a good or service in return
Federal Government Expendentures - correct answer ✔✔Include purchases as well a federal
government spending (social security payments)
3 Categories of federal government expendentures - correct answer ✔✔Interest on national
debt, grants to state or local governments, and transfer payments
Risk - correct answer ✔✔A difference between two yeilds is the level of what
90% - correct answer ✔✔At what percentage does debt become a problem
The Business Cycle - correct answer ✔✔This cycle is not uniform; expansion and recession are
not the same length, but every period of recession is followed by expansion
Examples of Captial - correct answer ✔✔Computer, factory building, machine tools,
warehouses, and trucks
Factors in Raising Living Standards - correct answer ✔✔Education, technology, and the changing
of attitudes,
3 Main Sources of Technological Change - correct answer ✔✔Better manufacturing equipment,
increase in human capital, better means of organizing and managing production
Countries are Poor because - correct answer ✔✔Climate, geography, location
