Ch.1 Economic Problem

Question 1

7 Goals of
Macroeconomy

Answer 1

1) Standard of Living
2) Economic Growth
3) Full Employment
4) Stable Prices
5) Viable Balance of
Int’l Trade
6) Equitable Distribution of Income
7) Manageable Gov Debt & Deficit

Question 2

3 Macroeconomic Tools

Answer 2

1) Fiscal Policy
taxing/ gov spending
2) Monetary Policy
int rate/ money supply
3) Direct Controls
tariff/ min wage/ regulation

Question 3

An item’s prod level ↑
⇒ per unit cost ↑
is the Law of ___ ___

Answer 3

The Law of
Increasing Costs