4_answers - USATestprep,Inc Macroeconomic Concepts(SSEMA1 Economic Activity(SSEMA2 Federal Reserve(SSEMA3 Fiscal Policy Student Name Teacher Name

4_answers - USATestprep,Inc Macroeconomic Concepts(SSEMA1...

This preview shows page 1 - 3 out of 7 pages.

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?
Background image
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?
Background image
Image of page 3

You've reached the end of your free preview.

Want to read all 7 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes