To regulate economic activity

To provide public goods and services

To promote economic growth

To redistribute income

National defense

Public parks

Healthcare

Education

To stabilize the economy

To promote economic growth

To redistribute income

To reduce unemployment

To stabilize the economy

To promote economic growth

To control inflation

To reduce unemployment

A graph that shows the relationship between inflation and unemployment

A graph that shows the relationship between economic growth and unemployment

A graph that shows the relationship between interest rates and inflation

A graph that shows the relationship between government spending and economic growth

The lowest level of unemployment that can be achieved without causing inflation

The highest level of unemployment that can be achieved without causing deflation

The level of unemployment that is consistent with full employment

The level of unemployment that is consistent with zero inflation

Microeconomics studies the behavior of individual economic agents, while macroeconomics studies the behavior of the economy as a whole.

Microeconomics studies the supply and demand for individual goods and services, while macroeconomics studies the supply and demand for all goods and services in the economy.

Microeconomics studies the prices of individual goods and services, while macroeconomics studies the overall price level in the economy.

Microeconomics studies the output of individual firms, while macroeconomics studies the output of the economy as a whole.

A positive economic statement is a statement that can be tested and verified, while a normative economic statement is a statement that cannot be tested and verified.

A positive economic statement is a statement that is based on facts, while a normative economic statement is a statement that is based on values.

A positive economic statement is a statement that is about what is, while a normative economic statement is a statement about what should be.

A positive economic statement is a statement that is agreed upon by all economists, while a normative economic statement is a statement that is not agreed upon by all economists.

In a market economy, the government makes all the economic decisions, while in a command economy, the consumers make all the economic decisions.

In a market economy, the prices of goods and services are determined by supply and demand, while in a command economy, the prices of goods and services are determined by the government.

In a market economy, the government owns all the means of production, while in a command economy, the private sector owns all the means of production.

In a market economy, there is no private property, while in a command economy, there is private property.

A progressive tax is a tax that is levied at a higher rate on higher incomes, while a regressive tax is a tax that is levied at a lower rate on higher incomes.

A progressive tax is a tax that is levied on all incomes, while a regressive tax is a tax that is levied only on low incomes.

A progressive tax is a tax that is levied on all goods and services, while a regressive tax is a tax that is levied only on certain goods and services.

A progressive tax is a tax that is levied by the federal government, while a regressive tax is a tax that is levied by state and local governments.

A budget deficit is when the government spends more money than it takes in, while a budget surplus is when the government takes in more money than it spends.

A budget deficit is when the government borrows money, while a budget surplus is when the government repays its debt.

A budget deficit is when the government increases taxes, while a budget surplus is when the government decreases taxes.

A budget deficit is when the government increases spending, while a budget surplus is when the government decreases spending.

A trade deficit is when a country imports more goods and services than it exports, while a trade surplus is when a country exports more goods and services than it imports.

A trade deficit is when a country's currency is worth less than other currencies, while a trade surplus is when a country's currency is worth more than other currencies.

A trade deficit is when a country has a negative balance of payments, while a trade surplus is when a country has a positive balance of payments.

A trade deficit is when a country's GDP is lower than its potential GDP, while a trade surplus is when a country's GDP is higher than its potential GDP.

A developed country is a country with a high standard of living and a high level of economic development, while a developing country is a country with a low standard of living and a low level of economic development.

A developed country is a country with a high level of education and a high level of healthcare, while a developing country is a country with a low level of education and a low level of healthcare.

A developed country is a country with a high level of industrialization and a high level of technology, while a developing country is a country with a low level of industrialization and a low level of technology.

A developed country is a country with a high level of democracy and a high level of human rights, while a developing country is a country with a low level of democracy and a low level of human rights.

A recession is a period of economic decline that lasts for at least two consecutive quarters, while a depression is a period of economic decline that lasts for at least six consecutive quarters.

A recession is a period of economic decline that is characterized by a decrease in output, employment, and investment, while a depression is a period of economic decline that is characterized by a decrease in output, employment, and investment, as well as a decrease in prices.

A recession is a period of economic decline that is caused by a decrease in consumer spending, while a depression is a period of economic decline that is caused by a decrease in investment.

A recession is a period of economic decline that is caused by a decrease in government spending, while a depression is a period of economic decline that is caused by a decrease in exports.