Exam 20: Introduction to Macroeconomics

A recession is usually associated with increasing unemployment.

A depression is a

Ami purchased 100 shares of stock for $10,000. A year later the stock is valued at $18,000. Instead of selling the stock, Ami held onto it for another year. Which of the following is true?

A corporate bond is a promissory note issued by a firm when it sells stock.

Keynesian economists believed that economic slowdowns are self-correcting.

The mechanism that normally coordinates what goes on in an economy is the

Slump, downturn and contraction are all words for a(n)

A contraction is associated with a negative rate of growth of the economy.

Since 1970, the U.S. economy has experienced four recessions.

The Federal Reserve affecting the supply of money is known as

During the U.S. recession of 1980-1982, the unemployment rate reached a high of ________ percent.

The following is a correct order in a business cycle: trough, recession, peak, expansion.

Between a trough and a peak, the economy goes through a(n)

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

In which basic market would DVDs be traded?

Which of the following is an assumption used by Classical economists?

The government implements fiscal policy when it changes

A household that spends less than it receives in income during a given period is

Rapid increases in the price level during periods of recession or high unemployment are known as

Macroeconomic policies became more influenced by Keynes' theories starting with