The U.S. economy begins to slow, so the U.S. prints more currency. What is the risk of this action?

The currency will lose value. More test answers on https://studyhippo.com/01-09-module-one-exam/

Democrats often argue in favor of what to push the economy toward economic recovery, as they did during the recession that began in 2008?

B. Increase government spending More test answers on https://studyhippo.com/eco-ch-12/

How might the Federal Reserve respond to an overheated economy or boom?

By selling bonds in the open market More test answers on https://studyhippo.com/6-4-2test-cst-the-art-of-policymaking/

Which of the following best describes the state of the US economy in 1939?

The US economy was in a depression. More test answers on https://studyhippo.com/mobilization-on-the-home-front/

when we measure the value of total production in the economy by calculating GDP, we are simultaneously

measuring the value of total income More test answers on https://studyhippo.com/econ-chapter-19-terms/

Which of the following factors have contributed the least to the growth of services in the U.S. economy?

Increased number of high-tech goods More test answers on https://studyhippo.com/marketing-ch13/

Which of the following is most likely to be involved in the deregulation of an economy?

Privatizing the state-owned companies More test answers on https://studyhippo.com/international-business-kanashiro/

When the economy is operating at full employment, the actual unemployment rate is

Equal to the natural unemployment rate More test answers on https://studyhippo.com/chapter-6-prices-and-unemployment/

When the economy of a country is operating close to its full capacity:

cyclical unemployment is close to zero. More test answers on https://studyhippo.com/macro-ch-24-25-26-54795/

According to the graph (not shown), in this economy there will be a tendency for

both wages and prices to rise over time More test answers on https://studyhippo.com/dsm-10/

Home Page Social Science Economics Applied Economics Economy

Economy Flashcards, test questions and answers

Discover flashcards, test exam answers, and assignments to help you learn more about Economy and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Economy and get quick solutions for your test.

What is Economy?

The economy is the backbone of any nation, and its health is of utmost importance. It affects every aspect of society, from the availability of jobs to the prices in stores. To understand how an economy works, it helps to look at some key concepts: supply and demand, inflation and deflation, aggregate demand and supply, and fiscal policy. Supply refers to the amount of goods or services that producers are willing to sell at a given price. Demand is simply how much people are willing to purchase a product for. When the level of demand exceeds supply, prices will go up; when there’s more supply than demand, prices will go down. Inflation occurs when prices rise over time due to an increase in money circulating in the economy; deflation occurs when prices fall due to a decrease in money circulating. The Federal Reserve sets interest rates as one way to manage these forces and maintain economic stability. Aggregate demand is the total amount of goods or services people want to buy at a given price point; aggregate supply is how much people are willing to produce at that same price point. When aggregate demand exceeds aggregate supplyalso known as overheatingthe economy can experience inflationary pressures as producers raise their prices in order to meet higher levels of consumer spending power. Finally, fiscal policy involves government intervention through taxes or spending programs designed to influence economic activity; this includes things like tax cuts or stimulus packages meant encourage investment by businesses or consumers alike. In conclusion, understanding these economic concepts can help us better understand our own economiesand why taking action on them matters so much for our future prosperity.