Economics: Today and Tomorrow © 2012

Chapter 17: Stabilizing the National Economy

Stabilizing the National Economy

1
People who do not follow federal and state laws with respect to reporting earnings are part of _____.
A)frictional unemployment
B)seasonal unemployment
C)structural unemployment
D)the underground economy
2
An economic condition in which rising prices and unemployment occur at the same time is called _____.
A)cost-push inflation
B)demand-pull inflation
C)stagflation
D)anticipated inflation
3
When the unemployment rate is lower than a certain number established by economists it is called _____.
A)stabilization policies
B)the unemployment rate
C)full employment
D)demand-pull inflation
4
Income that is removed from the economy through consumer savings is called _____.
A)an injection
B)an injection
C)a leakage
D)an equilibrium
5
All of the following are examples of leakages EXCEPT _____.
A)taxes paid by consumers
B)consumer savings
C)business borrowing for investment
D)taxes paid by corporations
6
Which of the following is defined as the removal of money income from the economy?
A)Fiscal policy
B)Circular flow of income
C)Equilibrium
D)Leakages
7
State of the economy in which leakages and injections balance each other is called _____.
A)a fiscal policy
B)the circular flow of income
C)equilibrium
D)injections
8
Which of the following is part of Milton Friedman's theory about stabilizing the economy?
A)When the amount of money in circulation expands, people spend more.
B)When the amount of money in circulation expands, people spend less.
C)Fed should regulate the nation's money supply.
D)Fed should use taxation as a way of stabilizing the economy.
9
Rather than operate with budget deficits each year, monetarists believe the government should _____.
A)borrow money in the credit market
B)balance the federal budget
C)use fiscal policy
D)rapidly decrease the money supply
10
Periods between the time fiscal policy is enacted and the time it becomes effective are called _____.
A)monetarism
B)monetarists
C)monetary rule
D)lags
Glencoe Online Learning CenterSocial Studies HomeProduct InfoSite MapContact Us

The McGraw-Hill CompaniesGlencoe

Please read our Terms of Use and Privacy Notice before you explore our Web site. To report a technical problem with this Web site, please contact the Web Producer.