MACROECONOMICS

PREQUIZ

Answer the following questions as best you can. GUESS! Work in groups of two or three students. Be sure to learn the names of the students in your group.

1. What is the present rate of inflation in the U.S.? _________________

2. Is this HIGH, LOW or NEITHER? _________________

3. What is the present rate of unemployment in the U.S.? _________________

4. Is this HIGH, LOW or NEITHER? _________________

5. What is the annual rate of economic growth in the U.S.? _________________

6. Is this HIGH, LOW, or NEITHER? _________________

7. What is the value of all goods and services produced in the U.S. in one year?

GDP = $ _________________

(Which year?________________)

8. What is the largest expenditure catagory for the U.S. government?

(defense; interest; foreign aid; income security; education) _________________

9. From which country does the U.S. import the most? _________________

10. To which country does the U.S. export the most? _________________

11. If government spending increases, what happens to:

Unemployment? _________________

Inflation? _________________

Economic Growth? _________________

12. If the money supply increases causing lower interest rates, what happens to:

Unemployment? _________________

Inflation? _________________

Economic Growth? _________________