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Chapter 16

Multiple Choice

Multiple Choice

This activity contains 10 questions.

	A rise in the general level of prices across the economic system is known as:   economic growth. recession. stagflation. inflation.

	The president’s recommendations to Congress regarding taxing, spending, and borrowing are influenced by his economic team, composed of all of the following sources except:   The Department of the Treasury. The Congressional Budget Office. The Office of Management and Budget. The Council of Economic Advisors.

	The task of the Federal Reserve Board is to:   serve the president. to issue the nation’s currency. regulate the money supply and by so doing to help avoid both inflation and recession. directly serve private citizens and firms.

	GDP stands for:   Gross Domestic Production. General Domestic Product. General Domestic Priorities. Gross Domestic Product.

	Prior to 1950, economic cycles in the United States produced:   moderate ups and downs with single digit swings in real GDP. extreme ups and downs with double digit swings in real GDP. no significant changes in real GDP. moderate ups and downs with single digit swings in real GDP.

	The Constitution places all taxing, borrowing and spending powers in the hands of   the Federal Reserve Board. the Congress. the president. the Department of the Treasury.

	The Federal Reserve Banks   helps clear checks through the banking system. lend money to banks at discount rates. are banker's banks. all of the above.

	What percentage of its gross domestic product does the U.S. export?   11 percent 12 percent 5 percent 15 percent

	Which of the following is NOT considered mandatory government spending?   military spending Medicare interest on the national debt indexing

	What is the highest current individual income tax rate?   38 percent 15 percent 35 percent 25 percent

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