Test#3 Study Guide
The test will consist of 20 True/False questions worth 5 points each. You will have 2 hours to complete the test. The test will open on Thursday and close on Sunday at 11:59 pm.
The following are a list of topics to study for the test:
- Negative demand shocks
- Positive supply shocks
- Stagflation
- long-run macroeconomic equilibrium
- recessionary gap
- inflationary gap
- Stabilization policy
- Expansionary vs. Contractionary Fiscal Policy
- The government spending multiplier vs. the government transfers/taxes multiplier
- The savings-investment spending identity in a closed economy
- national savings
- The four main types of financial assets
- The narrowest definition of the money supply
- The three main roles that money plays in the economy
- A bank's T-account
- The monetary base vs. the money supply
- The two main parts of the Federal Reserve System
- The Federal Open Market Committee
- The federal funds rate vs. the discount rate
- Open-market operation