Macroeconomics Flashcards
(15 cards)
What is the definition of macroeconomics?
Macroeconomics is the branch of economics that studies the behavior and performance of an economy as a whole.
True or False: Macroeconomics focuses on individual markets and consumer behavior.
False
What are the main goals of macroeconomic policy?
The main goals are to achieve economic growth, reduce unemployment, and control inflation.
Fill in the blank: The __________ is a measure of the total value of all goods and services produced in a country in a given period.
Gross Domestic Product (GDP)
What does GDP per capita indicate?
GDP per capita indicates the average economic output per person in a country.
Which of the following is NOT a component of GDP? A) Consumption B) Investment C) Savings D) Government Spending
C) Savings
What is inflation?
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
True or False: A high inflation rate is generally considered beneficial for an economy.
False
What is the purpose of monetary policy?
The purpose of monetary policy is to manage the money supply and interest rates to influence economic activity.
Fill in the blank: The __________ is the primary institution responsible for conducting monetary policy in the United States.
Federal Reserve
What is fiscal policy?
Fiscal policy refers to government spending and tax policies used to influence economic conditions.
Which economic indicator is commonly used to measure unemployment?
The unemployment rate
True or False: A recession is defined as two consecutive quarters of negative GDP growth.
True
What is the business cycle?
The business cycle refers to the fluctuations in economic activity that an economy experiences over a period.
What is a trade deficit?
A trade deficit occurs when a country’s imports exceed its exports.
