Macroeconomic Aims
Which aim tries to give jobs to everyone who can work?
Full Employment
True or False: Raising business taxes helps the economy grow?
F
What does the central bank control to help the economy?
Money Supply(Printing out dumb papers)
True or False: Falling prices make your savings more valuable?
T
"Too much money, too few products" causes which inflation?
Demand-Pull Inflation
If an economy grows very slowly for years, which aim isn't being met?
Sustainable Economic Growth
The government sends cash to people during a recession. This is called ______ policy and boosts ______.
Expansionary / Spending
Why won't central banks cut rates when prices AND joblessness are high?
Because it could make prices rise faster
Gas prices rise 50%. What type of price rise happens next?
Cost-Push Inflation
What is one way the government can help businesses create more jobs?
Offer training courses
If the price of an apple droped from 100 to 10, which aim is failing?
Price stability
To deal high prices, the government stops building roads. This ______ policy might cause more ______.
Contractionary / Unemployment
If the government lowered their interest rate, what happens to the economy?
People spend more
If your salary rises 3% but milk costs 5% more, do you gain or lose buying power?
lose 2%
If the government spends more money while the central bank makes loans more expensive, what is this called?
Expansionary Fiscal + Contractionary Monetary
Mr.Mehmet just raised the price of a homework pass from 300 CCE money to 330 CCE money, and the students could earn 10% more CCE money Each class, which aim is that.(More than one answer)
Price stability and economic growth
When u earn more u pay more tax, what is this policy
Progressive Tax
If the government printed too many cash, what happens
INflation
Prices double every week when governments overuse this machine. What is this machine
THE EVIL MONEY PRINTER
If Congress spends more while the Fed raises rates, what's this policy mix?
Expansionary Fiscal + Contractionary Monetary
Why is it hard to deal with high inflation and low employments
Due to high inflation, money became worth less, salaries paid will be hard to determine.
Where does the taxes from the rich goes to?
To help the poor
When normal tools fail, the Central bank buys long-term bonds. What is this called?
Quantitative Easing
If a bottle of milk costs 100 in 2021, 200 in 2022, 300 in 2023, 400 in 2024, 500 in 2025. what is happening
disinflation
What do we call it when prices keep going up but the economy isn't growing?( This is not in the text book, i've looked it up in dictionary)
Stagflation