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Peregrine Exam Day 7 questions with verified answers
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Peregrine Exam Day 7
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Peregrine Exam Day 7price level - answersa measure of the average prices of goods and services in the
economy
Price levels are expressed in... - answerssmall ranges or as discrete values such as
dollar figures
Price levels are leading indicators in the economy; - answersrising prices, indicate
higher demand leading to inflation while declining prices indicate lower demand or
deflation
In the investment world.... - answersprice level is referred to as support and resistance,
which help define entry and exit points
monetary policy - answersGovernment policy that attempts to manage the economy by
controlling the money supply and thus interest rates.
Aggregate Demand - answersthe amount of goods and services in the economy that will
be purchased at all possible price levels
How is CPI used? - answers1. as a target policy: to gauge our success in low inflation
-to measure inflationary tendencies
2. to index payments
3. to translate from nominal to real values
, Consumer transaction - answersA transaction in which an individual incurs an obligation
primarily for personal, family, or household purposes.
economic growth - answersthe ability of the economy to increase the production of
goods and services
Increases in capital goods, labor force, technology, and human capital - answerscan all
contribute to economic growth
Economic growth is commonly measured in terms of the increase in aggregated market
value of additional goods and services produced - answersusing estimates such as
GDP
National Savings - answersthe sum of private savings and the budget balance, is the
total amount of savings generated within the economy
National savings rate is GDP that is... - answerssaved rather than spent in an economy
It is calculated as the difference between a nation's income and consumption divided by
income - answersNational savings rate
The_____ is an indicator of a nation's health as it show trends in savings, which lead to
investments - answersnational savings rate
Household savings can be a source of borrowing - answersfor governments to provide
funds for public works and infrastructure needs
fiscal policy - answersGovernment policy that attempts to manage the economy by
controlling taxing and spending.
monetary policy - answersGovernment policy that attempts to manage the economy by
controlling the money supply and thus interest rates.
Supply-side policies - answerseconomic policies designed to stimulate the economy by
increasing production
expansionary fiscal policy - answersAn increase in government purchases of goods and
services, a decrease in net taxes, or some combination of the two for the purpose of
increasing aggregate demand and expanding real output
expansionary monetary policy - answersmonetary policy that increases aggregate
demand
consumption - answersincreases because borrowing is now cheaper, but also because
people need to spend less on things such as mortgage interest payments.
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