Section 6 MC Test Review
Mods 30-36
25 Questions
-Government spending, revenue, deficits, surpluses, and debt.
-The Federal Reserve system and its history.
-The goals of the Federal Reserve-low inflation and low unemployment.
-Define and understand money neutrality.
-Contractionary and expansionary FISCAL policy--taxes, spending, and automatic stabilizers.
-Contractionary and expansionary MONETARY policy--open market operations, reserve requirements, and the discount rate (window).
-The Phillips curve--shifts versus movements along the curve, LRPC, and the NAIRU concept.
-LONG RUN implications of policy choices or inaction--gaps create changes in wages in the long run leading to a shift of SRAS back to long run equilibrium.
-The loanable funds market--demand and supply of loanable funds, Fed interaction, real versus nominal interest rates.
-If you read this, write “Edward Quince is Ben Bernanke” underneath the date and period line on the answer sheet.
CURVES:
-AD/AS model
-Money market
-Loanable funds market
-Phillips curve.