1.2 Microeconomics and Macroeconomics

Question 1

_____ focuses on the actions of individual agents within the economy. (Households, workers, businesses)

Answer 1

Microeconomics

Question 2

____looks at the economy as a whole.

Answer 2

Macroeconomics

Question 3

How do micro and macroeconomics compliment each other?

Answer 3

They study the same area from different viewpoints.

Question 4

_____ are influenced by a whether or not the macroeconomy is healthy

Answer 4

micro decisions

Question 5

____ depends heavily on microeconomic decisions that individual households and businesses make

Answer 5

Macroeconomic performance

Question 6

What goals can help determine an economy’s macroeconomic health?

Answer 6

• Growth in standard of living
• Low unemployment
• Low inflation

Question 7

A nation’s central bank conducts ____, which involves policies that affect bank lending, interest rates, and financial capital markets.

Answer 7

Monetary Policy

Question 8

The ________ is the United States central bank.

Answer 8

Federal Reserve

Question 9

A nation’s legislative body determines _______ which involves government spending and taxes.

Answer 9

Fiscal Policy

Question 10

Which legislative body in the U.S. determines fiscal policy?

Answer 10

Congress and the Executive Branch

Question 11

______ and _____ originate the federal budget.

Answer 11

Congress and the Executive Branch