Exam 6: B: an Introduction to Macroeconomics

________ shocks are unexpected changes in the demand for goods and services While, _________ shocks are unexpected changes in the supply of goods and services.

In response to an unexpected change in demand, if the prices are free to adjust quickly:

The short-run fluctuations in output and unemployment that we see in the real world are the result of:

To explain the short-run fluctuations in the real-world economies, economists refer to:

If the economy's output and income double in 35 years, we can:

Which of the following countries had the highest GDP per capita in 2016?

A well-functioning financial system helps to promote economic growth and stability.

Economic growth is best defined as the:

Before the start of the Industrial Revolution in the late 1700s, living standards around the world were quite different.

To keep track of long-run growth and short-run fluctuations, economists will look at statistics such as:

The Flamingo Corporation issued $30 million in new common stock in 2008.It used $22 million of the proceeds to replace obsolete equipment in its factory and $8 million to repay bank loans.As a result, investment:

Refer to the above diagram (b), assume that DL represents low demand for the Turbo-car, DM represents the medium level of demand and, DH represents the high level of demand for Turbo-car and, Fancy Auto's optimal output level is 900 cars per week.If the Fancy Auto Company has a fixed price policy of $37,000 per vehicle:

Demand shocks are the expected changes in the demand for goods and services.

Refer to the above diagrams, one can conclude that if expectations are always fulfilled, Fancy Auto Company:

According to researchers, there is a direct link between unemployment and:

Which of the following industries is likely to have the least frequent price change?

Modern economic growth refers to:

Which would be considered an investment according to economists?

In reality, all the prices in the economy are inflexible and are not able to change rapidly when demand changes unexpectedly.

During the Great Recession, Canada lost: