Exam 20: Introduction to Macroeconomics

All business cycles are asymmetric-the length of an expansion is not necessarily the same as the length of a recession.

If Juanita purchases a share of stock for $20 and three years later sells it for $120, she will realize a

Monetary policy includes changing the level of household taxes.

We can use macroeconomic analysis to

A transfer payment is

It has become conventional to classify an economic downturn as a recession when aggregate output declines for

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. The period from after the fourth quarter of 2014 until before the first quarter of 2016 can be categorized as a period of

"Fine tuning" is any government attempt to regulate inflation or unemployment.

Related to the Economics in Practice on p. 418: John Steinbeck's The Grapes of Wrath is set in the early 1930s. During this time, the U.S. economy was primarily in the ________ phase of the business cycle, culminating in the Great Depression.

The behavior of all households and firms together is known as

According to ________ economists, the economy is self-correcting.

Government policymakers would like to have high ________ and low ________.

The unemployment rate equals

If Teresa purchases a share of stock for $15 and three years later sells it for $60, she will realize a

In the goods-and-services market, households

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

In the U.S. economy, the inflation rate in 1975 peaked at ________ percent.

A recession is usually associated with high inflation.

In a business cycle, a peak represents the end of ________ and a trough represents the end of ________.

Rapid ________ in prices during periods of ________ is known as stagflation.