Exam 20: Introduction to Macroeconomics

Microeconomics is concerned with the market price and equilibrium quantity of each good or service.

The government wants to encourage consumer spending through cutting income taxes. This is an example of

According to Keynes, the level of employment is determined by

The unemployment rate equals

In the United States, unemployment rose in all of the recessions that have occurred since the 1970s.

If output is falling and unemployment is rising, the economy must be in a(n)

A cash payment made by the government to people who do not supply goods, services or labor in exchange for the payment is a(n)

Fiscal policy generally takes the form of regulations specifying the maximum amount by which the money supply can be changed.

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

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

In 1933, the United States produced about ________ goods and services than it had in 1929.

Since 1970, the highest unemployment rate in the U.S was associated with the recession of

In the goods-and-services market, ________ only demand(s).

Keynes believed that expansionary fiscal policy could help get an economy out of an inflation.

Classical economists defended the economic concept of

Dividends are paid by firms to shareholders.

Stagflation occurs when the economy's ________ are both high.

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 peak existed around the

Since 1970, the highest inflation rate in the U.S. occurred in

Suppose the economy suffers a high rate of unemployment. According to Keynesian economists, the government should increase employment by