Macroeconomic Aims
Fill in the Blank:
Stable and low inflation aligns with the aim of _______.
Price Stability
True or false:
Tax cut is an example of expansionary fiscal policy.
True
Central banks control _______ to influence inflation.
Interest rates/supply of money
True/False: Deflation means prices rise slowly.
false
Name one tool of monetary policy.
Interest rate
The percentage of umemployment is rising. Which macroeconomic aim is failing?
Full employment
The government decideds to increases military spending. Is this fiscal or monetary policy?"
Fiscal Policy
The central bank sells bonds. Is this tightening or loosening policy?
Tightening
Wages rises, but productivity is flat. _______ might happen.
Inflation
If there is only 10 items and there are 30 people wants this product, what will happen?
Demand raises, causing demand-pull
If the GDP decreased, what negative effect does this go to?
Economic growth
If the government raises income taxes, what happens to purchasing ability?
It will decrease
If interest rates rise in the city, what happens to business investment?
decreases
If the money supply grows too fast, which inflation type results?
Demand-pull inflation
What is economics mostly about? (Use one word)
Choices.
The government decided to give inflation to the market.(the price of items rises) What will be effected?
Price stability
To reduce inequality, should the government use progressive taxes?
Yes. (give explanation if could)
Who is encharge of monetary policy?
Central bank
Inflation is bad in some cases because it effects___________.
the stability of the market
If the professor of a university tells in social media that vegetables are extremely good for health, what will this effect the demand-supply curve of apple?
Nothing happens
The tax between two country increases. What will be effected?
external stability
Why might a budget deficit turn worse during a decreasing in (a country's) economic?
Answers will vary. Example: Tax fall + welfare spending rises
What could Monetary Policy effect?
The value and currency of money
Inflation happens when prices rise.What is a different type of inflation mentioned in class?
Disinflation
Name one word Mr.Mehmet mentioned in every class.
Chao-mian