12/3/2015USATestprep, Inc.1/7Economics EOC Quiz Answer KeyMacroeconomic Concepts - (SSEMA1) Economic Activity, (SSEMA2) Federal Reserve , (SSEMA3) Fiscal PolicyStudent Name: _______________________Date: _________Teacher Name: Heather CreamerScore: _________1) Inflation is defined as a rise in the general level of prices. When inflation occurs, the buying power of the dollar wouldA)increase.B)decrease.C)remain stable.D)not be affected by inflation.Explanation:When inflation occurs, the buying power of the dollar would decrease. Inflation results in less "bang for your buck" because it erodesthe purchasing power of a unit of currency.2) If the federal government spends more than it collects in revenue, then3) Which statement describes economic activity in a recession?4) Of the following groups, who would be the most impacted by inflation?
12/3/2015USATestprep, Inc.2/75) The Consumer Price Index (CPI) is best used to determineA)the Dow Jones Index.B)the rate of inflation.C)the unemployment rate.D)currency exchange rates.Explanation:The Consumer Price Index shows the increase (or decrease) of prices for goods and services. It therefore is used to determine therate of inflation.6) Which result occurs when federal government expenditures are greater than the federal government's total receipts?