Suppose that Ford is an American company, and that Volkswagen is a German company. Which of the following would count in the American GNP, but not in the American GDP?

Suppose that the Federal Reserve decides to conduct “extraordinary” open-market purchases. This leads the Federal Funds Rate to _____, and commercial banks should respond by ____ lending.

Reducing the Labor Income Tax leads to a(n) ____ in employment, and is considered ____ fiscal policy.

Which of the following functions do commercial banks NOT perform?

Real GDP Government Receipts Government Outlays $ 3 trillion $0.3 trillion $1.3 trillion $ 4 trillion $0.6 trillion $1.1 trillion $ 5 trillion $0.9 trillion $0.9 trillion $ 6 trillion $1.2 trillion $0.7 trillion $ 7 trillion $1.5 trillion $0.5 trillion The government experiences a “balanced budget” when Real GDP equals _____.

Which of the following is not one of the monetary policy tools of the Federal Reserve?

Reducing the Labor Income Tax leads to a(n) ____ in employment, and is considered ____.

True or False: The economy depicted above is currently experiencing a recessionary gap.

Labor Market Category Number of People Employed 275,000 Unemployed 25,000 Not in the Labor Force 200,000 Refer to the table above. The value of the employment-to-population is approximately ____.

Suppose that the tax multiplier is -2, and that the government wishes to reduce Real GDP by $80 million. The government could ___ taxes by ____.