Question 1

Stagflation can be defined as a combination of ____.

Accepted Answer

A)  economic migration and inflation 
B)  economic aggregation and deflation 
C)  economic stagnation and inflation 
D)  economic aggregation and inflation 
A)  economic migration and inflation 
B)  economic aggregation and deflation 
C)  economic stagnation and inflation 
D)  economic aggregation and inflation

Question 2

In 2001,the first year of the Bush administration,Americans learned that recessions were a thing of the past.

Accepted Answer

A) True 
 B)False

Question 3

Macroeconomists think that

Accepted Answer

A)  most questions about individual markets are more important than the overall economy. 
B)  questions of overall unemployment are less important than the jobs of particular workers. 
C)  the details of resource allocation and individual market prices are less important than the amount of national output. 
D)  the causes of unemployment usually lie with the personalities of individual workers. 
E)  the price of particular products is more important than the overall price level. 
A)  most questions about individual markets are more important than the overall economy. 
B)  questions of overall unemployment are less important than the jobs of particular workers. 
C)  the details of resource allocation and individual market prices are less important than the amount of national output. 
D)  the causes of unemployment usually lie with the personalities of individual workers. 
E)  the price of particular products is more important than the overall price level.

Question 4

Dissatisfaction with public school education has led many parents to try home schooling for their children.If parents cut back on their jobs outside the home in order to spend time teaching their children at home,how will this affect GDP?

Accepted Answer

A)  GDP will increase. 
B)  Real GDP will increase and nominal GDP will decrease. 
C)  Both real and nominal GDP will increase. 
D)  GDP will decrease. 
A)  GDP will increase. 
B)  Real GDP will increase and nominal GDP will decrease. 
C)  Both real and nominal GDP will increase. 
D)  GDP will decrease.

Question 5

The worst post-World War II recession in the United States occurred in

Accepted Answer

A)  1964. 
B)  1973. 
C)  1981. 
D)  2007. 
A)  1964. 
B)  1973. 
C)  1981. 
D)  2007.

Question 6

In her book on the American work week,economist Juliet Schorr argues that Americans work too much.Her argument may be interpreted as concluding that this behavior

Accepted Answer

A)  increases GDP but decreases well being. 
B)  increases GDP and increases well-being. 
C)  decreases GDP and decreases well being. 
D)  decreases GDP but increases well being. 
A)  increases GDP but decreases well being. 
B)  increases GDP and increases well-being. 
C)  decreases GDP and decreases well being. 
D)  decreases GDP but increases well being.

Question 7

Amazon.com,an Internet retailer of books,buys a shipment of economics textbooks from a publisher.Is this included in GDP?

Accepted Answer

A)  Yes 
B)  No 
C)  It depends on how the payment is made 
D)  Yes,in real but not nominal GDP 
E)  Yes,in nominal but not real GDP 
A)  Yes 
B)  No 
C)  It depends on how the payment is made 
D)  Yes,in real but not nominal GDP 
E)  Yes,in nominal but not real GDP

Question 8

The successes of the 1960s were ascribed to the effects of

Accepted Answer

A)  classical policies from the 1800s. 
B)  classical policies from the 1930s. 
C)  classical policies from the 1950s. 
D)  Keynesian policies from the 1930s. 
E)  Keynesian policies from the 1950s. 
A)  classical policies from the 1800s. 
B)  classical policies from the 1930s. 
C)  classical policies from the 1950s. 
D)  Keynesian policies from the 1930s. 
E)  Keynesian policies from the 1950s.

Question 9

Figure 5-1  
-Figure 5-1 plots potential and real output for a hypothetical economy.Based on this graph,the recession occurred

Accepted Answer

A)  between years 1 and 2. 
B)  between years 2 and 3. 
C)  between years 3 and 4. 
D)  after year 4. 
A)  between years 1 and 2. 
B)  between years 2 and 3. 
C)  between years 3 and 4. 
D)  after year 4.

Question 10

Compare and contrast the U.S.economic record prior to 1940 and after 1950.How do the two time periods differ? What best explains the differences according to a macroeconomist?

Accepted Answer

The economy experienced business cycles

Question 11

The term "stagflation" was invented in the 1970s to describe an economy experiencing both

Accepted Answer

A)  deflation and economic stagnation. 
B)  inflation and economic stagnation. 
C)  high inflation and high employment. 
D)  high inflation and high levels of economic growth. 
A)  deflation and economic stagnation. 
B)  inflation and economic stagnation. 
C)  high inflation and high employment. 
D)  high inflation and high levels of economic growth.

Question 12

It might be useful to think of macroeconomics as a study of ____ and microeconomics as a study of ____.

Accepted Answer

A)  big corporations,small businesses 
B)  oceans,fish 
C)  the long run,the short run 
D)  abstract,concrete 
E)  theory,reality 
A)  big corporations,small businesses 
B)  oceans,fish 
C)  the long run,the short run 
D)  abstract,concrete 
E)  theory,reality

Question 13

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right,the result will be a

Accepted Answer

A)  decrease in the level of output. 
B)  decrease in the price level. 
C)  higher price level. 
D)  higher unemployment rate. 
A)  decrease in the level of output. 
B)  decrease in the price level. 
C)  higher price level. 
D)  higher unemployment rate.

Question 14

The Great Depression of the 1930s led to a revolution in macroeconomic thinking,following the work of

Accepted Answer

A)  Arthur Laffer. 
B)  Milton Friedman. 
C)  Adam Smith. 
D)  John Maynard Keynes. 
E)  David Ricardo. 
A)  Arthur Laffer. 
B)  Milton Friedman. 
C)  Adam Smith. 
D)  John Maynard Keynes. 
E)  David Ricardo.

Question 15

In response to the "Great Depression 2.0" the Obama administration responded with more tax cuts,increased federal spending,and aid to state and local governments.

Accepted Answer

A) True 
 B)False

Question 16

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time.This suggests that the primary cause of the recession was an

Accepted Answer

A)  inward shift of the aggregate demand curve. 
B)  outward shift of the aggregate supply curve. 
C)  inward shift of the aggregate supply curve. 
D)  outward shift of the aggregate demand curve. 
A)  inward shift of the aggregate demand curve. 
B)  outward shift of the aggregate supply curve. 
C)  inward shift of the aggregate supply curve. 
D)  outward shift of the aggregate demand curve.

Question 17

In macroeconomics,the vertical axis in a supply-demand model measures the price level rather than a particular product's price.

Accepted Answer

A) True 
 B)False

Question 18

Cars produced by General Motors in Mexico would be included in U.S.Gross Domestic Product.

Accepted Answer

A) True 
 B)False

Question 19

Consider the economic effects of the September 11,2001 terrorist attacks.Which of the following statements is correct?

Accepted Answer

A)  Reconstruction would lead to an increase in GDP. 
B)  Increased government spending on relief efforts in the U.S.would decrease GDP. 
C)  Lost items and buildings would lead to a decrease in GDP. 
D)  U.S.well-being was improved,despite the loss in GDP. 
A)  Reconstruction would lead to an increase in GDP. 
B)  Increased government spending on relief efforts in the U.S.would decrease GDP. 
C)  Lost items and buildings would lead to a decrease in GDP. 
D)  U.S.well-being was improved,despite the loss in GDP.

Question 20

The period of 1973 to 1980 can best be described as a time of

Accepted Answer

A)  deflation. 
B)  reflation. 
C)  unflation. 
D)  stagflation. 
E)  disflation. 
A)  deflation. 
B)  reflation. 
C)  unflation. 
D)  stagflation. 
E)  disflation.

Stagflation can be defined as a combination of ____.

In 2001,the first year of the Bush administration,Americans learned that recessions were a thing of the past.

Macroeconomists think that

Dissatisfaction with public school education has led many parents to try home schooling for their children.If parents cut back on their jobs outside the home in order to spend time teaching their children at home,how will this affect GDP?

The worst post-World War II recession in the United States occurred in

In her book on the American work week,economist Juliet Schorr argues that Americans work too much.Her argument may be interpreted as concluding that this behavior

Amazon.com,an Internet retailer of books,buys a shipment of economics textbooks from a publisher.Is this included in GDP?

The successes of the 1960s were ascribed to the effects of

Figure 5-1 -Figure 5-1 plots potential and real output for a hypothetical economy.Based on this graph,the recession occurred

Compare and contrast the U.S.economic record prior to 1940 and after 1950.How do the two time periods differ? What best explains the differences according to a macroeconomist?

The term "stagflation" was invented in the 1970s to describe an economy experiencing both

It might be useful to think of macroeconomics as a study of and microeconomics as a study of .

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right,the result will be a

The Great Depression of the 1930s led to a revolution in macroeconomic thinking,following the work of

In response to the "Great Depression 2.0" the Obama administration responded with more tax cuts,increased federal spending,and aid to state and local governments.

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time.This suggests that the primary cause of the recession was an

In macroeconomics,the vertical axis in a supply-demand model measures the price level rather than a particular product's price.

Cars produced by General Motors in Mexico would be included in U.S.Gross Domestic Product.

Consider the economic effects of the September 11,2001 terrorist attacks.Which of the following statements is correct?

The period of 1973 to 1980 can best be described as a time of

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

Exam 5: An Introduction To Macroeconomics

Stagflation can be defined as a combination of ____.

In 2001,the first year of the Bush administration,Americans learned that recessions were a thing of the past.

Macroeconomists think that

Dissatisfaction with public school education has led many parents to try home schooling for their children.If parents cut back on their jobs outside the home in order to spend time teaching their children at home,how will this affect GDP?

The worst post-World War II recession in the United States occurred in

In her book on the American work week,economist Juliet Schorr argues that Americans work too much.Her argument may be interpreted as concluding that this behavior

Amazon.com,an Internet retailer of books,buys a shipment of economics textbooks from a publisher.Is this included in GDP?

The successes of the 1960s were ascribed to the effects of

Figure 5-1 -Figure 5-1 plots potential and real output for a hypothetical economy.Based on this graph,the recession occurred

Compare and contrast the U.S.economic record prior to 1940 and after 1950.How do the two time periods differ? What best explains the differences according to a macroeconomist?

The term "stagflation" was invented in the 1970s to describe an economy experiencing both

It might be useful to think of macroeconomics as a study of ____ and microeconomics as a study of ____.

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right,the result will be a

The Great Depression of the 1930s led to a revolution in macroeconomic thinking,following the work of

In response to the "Great Depression 2.0" the Obama administration responded with more tax cuts,increased federal spending,and aid to state and local governments.

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time.This suggests that the primary cause of the recession was an

In macroeconomics,the vertical axis in a supply-demand model measures the price level rather than a particular product's price.

Cars produced by General Motors in Mexico would be included in U.S.Gross Domestic Product.

Consider the economic effects of the September 11,2001 terrorist attacks.Which of the following statements is correct?

The period of 1973 to 1980 can best be described as a time of

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand An Initial Look

The Goals Of Macroeconomic Policy

Economic Growth Theory And Policy

Aggregate Demand and The Powerful Consumer

Demand Side Equilibrium Unemployment Or Inflation

Bringing In The Supply Side Unemployment and Inflation

Managing Aggregate Demand Fiscal Policy

Money and The Banking System

Monetary Policy Conventional and Unconventional

The Financial Crisis and The Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits In The Short and Long Run

The Trade Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System Order Or Disorder

Exchange Rates and The Macroeconomy

Filters

It might be useful to think of macroeconomics as a study of and microeconomics as a study of .