Macroeconomics Questions

Inflation occurring at an extremely high rate is called ______ .

In Chapter 9 of Economics in One Lesson, Hazlitt writes that the justification for public jobs like police officers, firefighters, judges, and legislators "does not consist in the 'purchasing power' they possess by virtue of being on the public payroll," but instead "consists in the ________ of their services."

If the value of your house goes down by 10%, it means that the housing market is experiencing ________.

Which of the following scenarios would likely result in cost-push inflation?

Hazlitt writes that "savings" can be defined as the available supply of new capital and that "investment" can be defined as the demand for new capital. Just like supply and demand determines the price for anything else, supply and demand determines the price that savers are paid for loaning out their money. What does Hazlitt say "the special name for the price of [this] loaned capital" is?

One of the American government's ongoing economic policies is assisting research through grants and programs. Which of the following agencies is an example of such programs?

Classical economists like Adam Smith believed that the economy was self-correcting in the long run. Which economist argued that waiting for the economy to self-correct was foolish, saying, "In the long run we are all dead," and instead recommended strong action by the government to jump-start the economy?

An example of an international economic institution is the IMF, or International ________ Fund.

What is usually a downside of lowering taxes and increasing government spending?

Deflation usually causes people to increase _________ , which leads to a decrease in __________.

According to Hazlitt, which of the following are effects of keeping interest rates artificially low? (Choose all that apply.)

What American recession was triggered by a subprime mortgage crisis, which led to a bank credit crisis?

Imagine that you live in a small nation of 10,000 people. The nation's richest citizen gives away a billion dollars by giving each citizen $100,000. One effect of this gift is that prices across the nation spike upward. What type of inflation is this?

One argument made against reducing the bureaucracy is that it would hurt the economy by reducing the purchasing power of the dismissed officeholders. What fallacy causes this argument to be made?

The worst period of inflation in history occurred in 1946, when prices doubled every 15.6 hours in the nation of ________.

In Chapter 9, Hazlitt writes that the justification for public jobs like police officers, firefighters, judges, and legislators "does not consist in the 'purchasing power' they possess by virtue of being on the public payroll," but instead "consists in the _______ of their services."

________ policy refers to changes in federal taxation and spending that are designed to influence the economy.

Monetary inflation can create a chain reaction that results in even more inflation. This occurs because monetary inflation can cause ________ when people recognize that the value of their money is going to decline in the future.

The period of the business cycle where growth slows down and unemployment increases is called the ________ phase.

In the United States, the federal government seeks to achieve three economic goals: