Question 1

In response to significant economic problems,the Obama administration recommended

Accepted Answer

A)  more tax cuts. 
B)  increased government spending. 
C)  substantial aid to state and local governments. 
D)  all of the above 
A)  more tax cuts. 
B)  increased government spending. 
C)  substantial aid to state and local governments. 
D)  all of the above

Question 2

A recession is a period during which

Accepted Answer

A)  aggregate demand,production,and unemployment rises. 
B)  aggregate demand,production,and unemployment falls. 
C)  aggregate demand,production,and unemployment remain the same. 
D)  aggregate demand and production rises while unemployment remains the same. 
E)  aggregate demand and production falls while unemployment rises. 
A)  aggregate demand,production,and unemployment rises. 
B)  aggregate demand,production,and unemployment falls. 
C)  aggregate demand,production,and unemployment remain the same. 
D)  aggregate demand and production rises while unemployment remains the same. 
E)  aggregate demand and production falls while unemployment rises.

Question 3

The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of

Accepted Answer

A)  low unemployment and decreasing inflation rates. 
B)  low unemployment and increasing budget deficits. 
C)  low unemployment and increasing interest rates. 
D)  high unemployment and increasing inflation rates. 
A)  low unemployment and decreasing inflation rates. 
B)  low unemployment and increasing budget deficits. 
C)  low unemployment and increasing interest rates. 
D)  high unemployment and increasing inflation rates.

Question 4

The significantly high rates of inflation in the 1970s occurred,in part,

Accepted Answer

A)  because of increased petroleum prices. 
B)  due to high unemployment. 
C)  despite falling gasoline prices. 
D)  due to restrictive monetary policies. 
A)  because of increased petroleum prices. 
B)  due to high unemployment. 
C)  despite falling gasoline prices. 
D)  due to restrictive monetary policies.

Question 5

Stagflation is the simultaneous occurrence of inflation and high unemployment.

Accepted Answer

A) True 
 B)False

Question 6

Nominal GDP includes the current value of services produced in the economy.

Accepted Answer

A) True 
 B)False

Question 7

The clearest sign of inflation would be a(n)

Accepted Answer

A)  increase in the price level. 
B)  increase in the quantity of total final output. 
C)  decrease in the quantity of total final output. 
D)  simultaneous increase in both output and prices. 
A)  increase in the price level. 
B)  increase in the quantity of total final output. 
C)  decrease in the quantity of total final output. 
D)  simultaneous increase in both output and prices.

Question 8

From 2000 to 2001,the U.S.economy's annual growth rate slowed down abruptly.

Accepted Answer

A) True 
 B)False

Question 9

According to Keynes,a pessimistic outlook causes consumers and businesspersons to ____,and a recession could occur.

Accepted Answer

A)  increase planned investment 
B)  decrease planned spending 
C)  increase exports 
D)  decrease imports 
E)  decrease saving 
A)  increase planned investment 
B)  decrease planned spending 
C)  increase exports 
D)  decrease imports 
E)  decrease saving

Question 10

Stabilization policy often faces a trade-off between inflation and unemployment.

Accepted Answer

A) True 
 B)False

Question 11

Illegal gambling on the NCAA Final Four would be included in GDP.

Accepted Answer

A) True 
 B)False

Question 12

The name given to government programs implemented to prevent or shorten recessions and counteract inflation is

Accepted Answer

A)  supply-side economics. 
B)  contractionary policy. 
C)  monetary policy. 
D)  stabilization policy. 
A)  supply-side economics. 
B)  contractionary policy. 
C)  monetary policy. 
D)  stabilization policy.

Question 13

When people smoke cigarettes,their friends and family members may become sick.This affects GDP by

Accepted Answer

A)  reducing GDP by the amount of medical care needed. 
B)  reducing GDP by the cost of the cigarettes purchased. 
C)  increasing GDP by the cost of the medical care and the cost of the cigarettes purchased. 
D)  decreasing GDP by the cost of the medical care and increasing GDP by the cost of the cigarettes purchased. 
A)  reducing GDP by the amount of medical care needed. 
B)  reducing GDP by the cost of the cigarettes purchased. 
C)  increasing GDP by the cost of the medical care and the cost of the cigarettes purchased. 
D)  decreasing GDP by the cost of the medical care and increasing GDP by the cost of the cigarettes purchased.

Question 14

Since countries differ in the amount of economic activity that is transacted in organized markets,

Accepted Answer

A)  some countries are more productive than others. 
B)  persons live better in some countries than others. 
C)  international comparisons of per capita GDP are often misleading. 
D)  comparisons between countries are totally impossible. 
A)  some countries are more productive than others. 
B)  persons live better in some countries than others. 
C)  international comparisons of per capita GDP are often misleading. 
D)  comparisons between countries are totally impossible.

Question 15

The Great Depression changed the prevailing thinking about economics.

Accepted Answer

A) True 
 B)False

Question 16

Phoebe and Rachel quit running in Central Park and join a health club to run on treadmills.This decision

Accepted Answer

A)  has no effect on GDP. 
B)  increases GDP. 
C)  decreases GDP. 
D)  increases nominal but not real GDP. 
A)  has no effect on GDP. 
B)  increases GDP. 
C)  decreases GDP. 
D)  increases nominal but not real GDP.

Question 17

A macroeconomist would concentrate on which of the following issues?

Accepted Answer

A)  the price of pizzas 
B)  the profits of the IBM Corporation 
C)  the unemployment rate in Germany 
D)  the market for hot dogs 
A)  the price of pizzas 
B)  the profits of the IBM Corporation 
C)  the unemployment rate in Germany 
D)  the market for hot dogs

Question 18

Two of the most important macroeconomic issues are unemployment and inflation.

Accepted Answer

A) True 
 B)False

Question 19

Large sport utility vehicles (SUVs)add significantly to air pollution because they do not have to meet passenger auto emission standards.The purchase of an SUV

Accepted Answer

A)  adds less to GDP since the pollution costs are subtracted from GDP. 
B)  adds to nominal but not real GDP because of the pollution costs. 
C)  is a net loss to GDP because the pollution costs are so large. 
D)  increases GDP. 
A)  adds less to GDP since the pollution costs are subtracted from GDP. 
B)  adds to nominal but not real GDP because of the pollution costs. 
C)  is a net loss to GDP because the pollution costs are so large. 
D)  increases GDP.

Question 20

What was suggested by Keynes to move the economy out of a depressed state?

Accepted Answer

A)  The invisible hand 
B)  The price mechanism 
C)  Monetary and fiscal policy 
D)  Zero government intervention 
A)  The invisible hand 
B)  The price mechanism 
C)  Monetary and fiscal policy 
D)  Zero government intervention

In response to significant economic problems,the Obama administration recommended

A recession is a period during which

The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of

The significantly high rates of inflation in the 1970s occurred,in part,

Stagflation is the simultaneous occurrence of inflation and high unemployment.

Nominal GDP includes the current value of services produced in the economy.

The clearest sign of inflation would be a(n)

From 2000 to 2001,the U.S.economy's annual growth rate slowed down abruptly.

According to Keynes,a pessimistic outlook causes consumers and businesspersons to ____,and a recession could occur.

Stabilization policy often faces a trade-off between inflation and unemployment.

Illegal gambling on the NCAA Final Four would be included in GDP.

The name given to government programs implemented to prevent or shorten recessions and counteract inflation is

When people smoke cigarettes,their friends and family members may become sick.This affects GDP by

Since countries differ in the amount of economic activity that is transacted in organized markets,

The Great Depression changed the prevailing thinking about economics.

Phoebe and Rachel quit running in Central Park and join a health club to run on treadmills.This decision

A macroeconomist would concentrate on which of the following issues?

Two of the most important macroeconomic issues are unemployment and inflation.

Large sport utility vehicles (SUVs)add significantly to air pollution because they do not have to meet passenger auto emission standards.The purchase of an SUV

What was suggested by Keynes to move the economy out of a depressed state?

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

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Exam 5: An Introduction To Macroeconomics

In response to significant economic problems,the Obama administration recommended

A recession is a period during which

The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of

The significantly high rates of inflation in the 1970s occurred,in part,

Stagflation is the simultaneous occurrence of inflation and high unemployment.

Nominal GDP includes the current value of services produced in the economy.

The clearest sign of inflation would be a(n)

From 2000 to 2001,the U.S.economy's annual growth rate slowed down abruptly.

According to Keynes,a pessimistic outlook causes consumers and businesspersons to ____,and a recession could occur.

Stabilization policy often faces a trade-off between inflation and unemployment.

Illegal gambling on the NCAA Final Four would be included in GDP.

The name given to government programs implemented to prevent or shorten recessions and counteract inflation is

When people smoke cigarettes,their friends and family members may become sick.This affects GDP by

Since countries differ in the amount of economic activity that is transacted in organized markets,

The Great Depression changed the prevailing thinking about economics.

Phoebe and Rachel quit running in Central Park and join a health club to run on treadmills.This decision

A macroeconomist would concentrate on which of the following issues?

Two of the most important macroeconomic issues are unemployment and inflation.

Large sport utility vehicles (SUVs)add significantly to air pollution because they do not have to meet passenger auto emission standards.The purchase of an SUV

What was suggested by Keynes to move the economy out of a depressed state?

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