Exam 20: Introduction to Macroeconomics

Government policies regarding taxes and expenditures are called

Unemployment implies that in the labor market there is

Related to the Economics in Practice on p. 418: F. Scott Fitzgerald's The Great Gatsby is set in the "Roaring '20s." This decade in U.S. history was characterized by

Households, firms, and government purchase from the goods-and-services market.

Since most economies, on average, ________ over time, business cycles show a ________ trend.

Stagflation occurs primarily during periods of rapid economic growth.

Compared to the period after World War II, business cycles in the United States before World War II were

Promissory notes issued by the federal government when it borrows money are known as

Since 1970, the U.S. economy has experienced ________ recession(s).

The interest rate on a given loan reflects the ________ of the loan and the perceived risk to the ________.

According to the Classical model, unemployment

Fiscal policy refers to government policies concerning taxing and spending.

Stagflation occurs when there is a decline in the unemployment rate.

An expansion is usually associated with rising employment.

Treasury bonds are ________ issued by the federal government when it borrows money.

A period when the economy shrinks is known as

If the labor force is 400 and employment is 380, then the unemployment rate is

Deflation occurs when

According to Classical models, the level of employment is determined primarily by

According to the Classical model, an excess supply of labor would drive up wages to a new equilibrium level and therefore unemployment would not persist.