Exam 20: Introduction to Macroeconomics

In a business cycle, a trough represents the end of

Contractionary fiscal policy includes raising taxes.

Keynes believed that contractionary fiscal policy could help to slow down increases in unemployment.

Macroeconomic behavior is the sum of all the microeconomic decisions made by individual households and firms.

A period during which aggregate output falls is known as a(n)

Refer to the information for this hypothetical economy provided in Table 20.1 below to answer the question(s) that follow. Table 20.1 2014 2015 2016 -Refer to Table 20.1. In this economy, a trough existed around the

Javier purchased a 1972 Dodge Charger in 2011 for $17,000 and a year later he sold it for $21,000. Due to these transactions

A transfer payment is the revenue one receives when filing for a tax refund.

The period in the business cycle from a peak to a trough is a

A capital gain is the increase in value of an asset above its initial cost.

Which of the following would be an example of fine-tuning?

According to Classical economists, if the quantity of labor demanded exceeds the quantity supplied, there is a

According to Keynes, aggregate supply determines the level of economic activities in the economy.

Since 1970, the annual inflation rate in the U.S. has been about 9.7 percent or more.

If 5 million workers are unemployed and 45 million workers are employed, then the unemployment rate is

In the circular flow diagram, ________ demand labor and ________ demand goods and services.

The employment rate equals

The behavior of all households and firms together is called the business cycle.

Wayne purchased 10 autographed Eli Manning football cards when he was 15 years old for a total cost of $50 and then sold those football cards 4 years later for $800. Due to these transactions

Dividends are