Answer the following item in paragraph form, using complete sentences. Hank and Betsy have just brought home their newborn, Lindsey.  They ask you for advice about caring for the baby.  Name three of Lindsey’s basic needs.

Automatic stabilizers function by:

Contractionary fiscal policy involves:

Match each definition with the correct term.  Do not use any term more than once.  Some terms will not be used at all.

Which of the following best describes the marginal propensity to consume (MPC)?

What does GDP per capita measure?

In the market for loanable funds, what determines the equilibrium interest rate?

Which of the following is a direct way in which government policy can stimulate economic growth?

What is the likely effect on the market for loanable funds if there is a rise in household confidence, leading to an increase in household savings?

Which of the following is a primary goal of inflation targeting by central banks?