Question 1

Combining various goods and services into a convenient grouping is called

Accepted Answer

A)  conglomeration. 
B)  blending. 
C)  congregation. 
D)  agglomeration. 
E)  aggregation. 
A)  conglomeration. 
B)  blending. 
C)  congregation. 
D)  agglomeration. 
E)  aggregation.

Question 2

Figure 5-2  
-In Figure 5-2,if the aggregate demand curve moves to the right less rapidly than the aggregate supply curve,then

Accepted Answer

A)  the price level should decline over time. 
B)  the price level should remain stable. 
C)  the price level will tend to increase. 
D)  the level of real GDP should decrease. 
A)  the price level should decline over time. 
B)  the price level should remain stable. 
C)  the price level will tend to increase. 
D)  the level of real GDP should decrease.

Question 3

If a macroeconomist aggregates many markets into one,then

Accepted Answer

A)  individual market differences are eliminated. 
B)  one must not confuse ravioli and hot dogs. 
C)  she is performing a meaningless exercise. 
D)  differences between products must still be noted. 
A)  individual market differences are eliminated. 
B)  one must not confuse ravioli and hot dogs. 
C)  she is performing a meaningless exercise. 
D)  differences between products must still be noted.

Question 4

For a macroeconomist,the case for aggregation is based on two principles⎯1)the composition of demand and supply may not matter for some purposes,and 2)

Accepted Answer

A)  during fluctuations markets normally move together. 
B)  individual markets allocate resources efficiently. 
C)  inflation,unemployment,and growth never go together. 
D)  individual markets distribute income efficiently. 
A)  during fluctuations markets normally move together. 
B)  individual markets allocate resources efficiently. 
C)  inflation,unemployment,and growth never go together. 
D)  individual markets distribute income efficiently.

Question 5

Technological change,such as the information technology revolution of the 1990s can shift the aggregate supply curve outward.If,at the same time,the government is decreasing spending,the most likely outcome of these two factors is a(n)

Accepted Answer

A)  increase in the price level. 
B)  decrease in the price level. 
C)  increase in real GDP. 
D)  decrease in real GDP. 
A)  increase in the price level. 
B)  decrease in the price level. 
C)  increase in real GDP. 
D)  decrease in real GDP.

Question 6

An example of an intermediate good would be a(n)

Accepted Answer

A)  new car. 
B)  used car. 
C)  new tire for a used car. 
D)  tire for a new car. 
E)  All of the above. 
A)  new car. 
B)  used car. 
C)  new tire for a used car. 
D)  tire for a new car. 
E)  All of the above.

Question 7

In the period of U.S.economic history known as the Great Depression,the rate of inflation was generally

Accepted Answer

A)  trending upward. 
B)  positive. 
C)  uncertain. 
D)  negative. 
A)  trending upward. 
B)  positive. 
C)  uncertain. 
D)  negative.

Question 8

The supply-side policies of the Reagan and Bush administrations led to high levels of

Accepted Answer

A)  budget surpluses. 
B)  unemployment. 
C)  inflation. 
D)  budget deficits. 
A)  budget surpluses. 
B)  unemployment. 
C)  inflation. 
D)  budget deficits.

Question 9

John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene.

Accepted Answer

A) True 
 B)False

Question 10

The Great Depression ended in the United States when

Accepted Answer

A)  the New Deal reforms were initiated by President Roosevelt. 
B)  deficit spending ended in 1937. 
C)  the United States returned to the gold standard in 1940. 
D)  the United States began to mobilize for war in the early 1940s. 
E)  the German economy suffered hyperinflation in the 1920s. 
A)  the New Deal reforms were initiated by President Roosevelt. 
B)  deficit spending ended in 1937. 
C)  the United States returned to the gold standard in 1940. 
D)  the United States began to mobilize for war in the early 1940s. 
E)  the German economy suffered hyperinflation in the 1920s.

Question 11

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

Accepted Answer

An "aggregate" is an abstraction that ma

Question 12

The primary benefit to the macroeconomy of increasing government spending is a(n)

Accepted Answer

A)  decrease in the price level. 
B)  decrease in real GDP. 
C)  increase in the price level. 
D)  decrease in the unemployment rate. 
A)  decrease in the price level. 
B)  decrease in real GDP. 
C)  increase in the price level. 
D)  decrease in the unemployment rate.

Question 13

Growth in GDP systematically understates the growth in national well being because

Accepted Answer

A)  ecological costs are netted out of GDP. 
B)  "bads" as well as "goods" get included in GDP. 
C)  investment is not included in GDP. 
D)  as a country gets richer,leisure time increases. 
A)  ecological costs are netted out of GDP. 
B)  "bads" as well as "goods" get included in GDP. 
C)  investment is not included in GDP. 
D)  as a country gets richer,leisure time increases.

Question 14

The period from 1983 to 1990 was characterized by

Accepted Answer

A)  decreasing budget deficits and increasing trade surpluses. 
B)  persistently high inflation. 
C)  below average rates of real GDP growth. 
D)  consistent growth of real GDP and decreasing rates of inflation. 
A)  decreasing budget deficits and increasing trade surpluses. 
B)  persistently high inflation. 
C)  below average rates of real GDP growth. 
D)  consistent growth of real GDP and decreasing rates of inflation.

Question 15

In periods of generally rising prices,

Accepted Answer

A)  real GDP will grow faster than nominal GDP. 
B)  nominal GDP will grow slower than real GDP. 
C)  real GDP will grow slower than nominal GDP. 
D)  real GDP and nominal GDP will grow at the same rate. 
A)  real GDP will grow faster than nominal GDP. 
B)  nominal GDP will grow slower than real GDP. 
C)  real GDP will grow slower than nominal GDP. 
D)  real GDP and nominal GDP will grow at the same rate.

Question 16

A real estate salesperson sells a house in 2015 that was built in 2005.How does this transaction get counted in the GDP statistics?

Accepted Answer

A)  The price of the house and the real estate salesperson's commission are both included in 2015's GDP. 
B)  Neither the price of the house or the commission is included in 2015's GDP. 
C)  The real estate salesperson's commission but not the price of the house is included in 2015's GDP. 
D)  The price of the house would be included in both 2005's GDP and the GDP for 2015. 
A)  The price of the house and the real estate salesperson's commission are both included in 2015's GDP. 
B)  Neither the price of the house or the commission is included in 2015's GDP. 
C)  The real estate salesperson's commission but not the price of the house is included in 2015's GDP. 
D)  The price of the house would be included in both 2005's GDP and the GDP for 2015.

Question 17

An increase in aggregate demand will result in inflation.

Accepted Answer

A) True 
 B)False

Question 18

Business cycles are a persistent feature of the U.S.economy.

Accepted Answer

A) True 
 B)False

Question 19

What is Gross Domestic Product? What is included in this statistic? What is excluded? Give two examples of goods or services that are included in GDP and two examples of goods or services that are excluded.

Accepted Answer

Gross Domestic Product is an aggregate a

Question 20

In the United States during the period from 1870 to 1940,the price level was most likely to

Accepted Answer

A)  fluctuate. 
B)  increase. 
C)  decrease. 
D)  trend generally upward. 
A)  fluctuate. 
B)  increase. 
C)  decrease. 
D)  trend generally upward.

Combining various goods and services into a convenient grouping is called

Figure 5-2 -In Figure 5-2,if the aggregate demand curve moves to the right less rapidly than the aggregate supply curve,then

If a macroeconomist aggregates many markets into one,then

For a macroeconomist,the case for aggregation is based on two principles⎯1)the composition of demand and supply may not matter for some purposes,and 2)

Technological change,such as the information technology revolution of the 1990s can shift the aggregate supply curve outward.If,at the same time,the government is decreasing spending,the most likely outcome of these two factors is a(n)

An example of an intermediate good would be a(n)

In the period of U.S.economic history known as the Great Depression,the rate of inflation was generally

The supply-side policies of the Reagan and Bush administrations led to high levels of

John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene.

The Great Depression ended in the United States when

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

The primary benefit to the macroeconomy of increasing government spending is a(n)

Growth in GDP systematically understates the growth in national well being because

The period from 1983 to 1990 was characterized by

In periods of generally rising prices,

A real estate salesperson sells a house in 2015 that was built in 2005.How does this transaction get counted in the GDP statistics?

An increase in aggregate demand will result in inflation.

Business cycles are a persistent feature of the U.S.economy.

What is Gross Domestic Product? What is included in this statistic? What is excluded? Give two examples of goods or services that are included in GDP and two examples of goods or services that are excluded.

In the United States during the period from 1870 to 1940,the price level was most likely to

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

Combining various goods and services into a convenient grouping is called

Figure 5-2 -In Figure 5-2,if the aggregate demand curve moves to the right less rapidly than the aggregate supply curve,then

If a macroeconomist aggregates many markets into one,then

For a macroeconomist,the case for aggregation is based on two principles⎯1)the composition of demand and supply may not matter for some purposes,and 2)

Technological change,such as the information technology revolution of the 1990s can shift the aggregate supply curve outward.If,at the same time,the government is decreasing spending,the most likely outcome of these two factors is a(n)

An example of an intermediate good would be a(n)

In the period of U.S.economic history known as the Great Depression,the rate of inflation was generally

The supply-side policies of the Reagan and Bush administrations led to high levels of

John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene.

The Great Depression ended in the United States when

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

The primary benefit to the macroeconomy of increasing government spending is a(n)

Growth in GDP systematically understates the growth in national well being because

The period from 1983 to 1990 was characterized by

In periods of generally rising prices,

A real estate salesperson sells a house in 2015 that was built in 2005.How does this transaction get counted in the GDP statistics?

An increase in aggregate demand will result in inflation.

Business cycles are a persistent feature of the U.S.economy.

What is Gross Domestic Product? What is included in this statistic? What is excluded? Give two examples of goods or services that are included in GDP and two examples of goods or services that are excluded.

In the United States during the period from 1870 to 1940,the price level was most likely to

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