Part One

  1. What are the four phases of the business cycle?
  2. Which phase of the business cycle would be the best time to purchase a large ticket item?
  3. How do you calculate the labor force participation rate?
  4. Who is accounted for in our country’s labor force?
  5. How is our country’s unemployment rate calculated?
  6. In one to two sentences, please define the term, “full employment?”
  7. In one to two sentences, what is a discouraged worker?
  8. What are the four types of unemployment?
  9. Which type of unemployment is the direct cause of our country (economy) contracting?
  10. In one to two sentences, please define, inflation?

Part Two

  1. In two or more sentences, describe the goals and objectives of the Federal Reserve?
  2. Does the Federal Reserve or the federal government set interest rates for our country?
  3. What are the three (3) monetary policy tools used by the Federal Reserve?
  4. What are the two (2) fiscal policy tools used by the federal government?
  5. In one to two sentences, define the term, “Quantitative Easing?”
  6. Does the Federal Reserve or the federal government print our country’s paper money?
  7. In one to two sentences, describe expansionary monetary policy?
  8. In one to two sentences, describe expansionary fiscal policy?
  9. Explain how the Federal Reserve would be able to contract our country’s money supply using all three monetary policy tools?
  10. Explain how the Federal Reserve would be able to expand our country’s money supply using all three monetary policy tools?

 

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