Sophia Marcoeconomics Milestone 1 1 Which of the following terms is the sum of all final goods and services purchased in an economy? Resource cost/Income approach Factor market Expenditure appr... oach GDP growth CONCEPT Economic Growth (GDP) 2 Which definition below corresponds to economic indicators? Data that indicates past, present and future activity The movement of the market through periods of expansion and recession, peaks and troughs The movement of money in and out of a country or other entity Exchange transactions that occur across nations CONCEPT Why Study Macroeconomics? 3 Which of the following could cause a shift in the demand curve? A change in income A major shift in supply A change in quantity A change in production capacity CONCEPT Supply and Demand 4 Which of the following is the most significant tool the government can use to reduce the severity of business cycles? Spending Public goods Social security Debt reduction CONCEPT Role of the Government/Government Spending/Transfer Payments 5 Which term below refers to investment and financial flows that have the ability to appreciate or depreciate currency? Balance of payments Trade deficit Current account Capital account CONCEPT International Trade 6 If the base currency is 1 and the price currency is 3.4, which of the following is the exchange rate? 0.29 0.25 0.34 0.35 CONCEPT Foreign Exchange and Currency 7 Which of the following policy types can promote growth when the economy is showing signs of slowing? Both Monetary policy Fiscal policy Neither CONCEPT Monetary Policy/Fiscal Policy 8 Which statement be [Show More]
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