Exam 5: An Introduction To Macroeconomics

Since the end of World War II,the economy of the United States has been more influenced by stabilization policy.One of the undesirable side effects of this has been that the economy now has a greater tendency to suffer from

Gross Domestic Product accurately measures the environmental costs of producing all goods and services.

Macroeconomists are distinguished from microeconomists because macroeconomists are more interested in

General Motors Corporation (a U.S.-based firm)produces a Saab vehicle in Sweden,and sells it in the United States.In which country's GDP is it included?

A rightward shift in the aggregate demand curve is most likely to result in

Changes in nominal GDP always reflect changes in real output.

When the Art Institute of Chicago purchases a painting by Mary Cassatt that she produced in Paris in 1885,this would not be included in the U.S.GDP for 2015.

Which of the following is included in GDP?

The Great Depression of the 1930s

Gross Domestic Product represents the money value of all final goods and services produced in the domestic economy within the year.

One major effect of the Great Depression was

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

The major difference between nominal GDP and real GDP is that

According to the text,the government can use aggregate demand management policies to reduce unemployment rates.A byproduct of this policy will be

Why do price levels increase when government adopts fiscal or monetary policy to correct the economy when it faces a recession and high unemployment?

If the government uses stabilization policies to reduce inflation,the economy may have to suffer

Keynes' great book offered the promise of ending depressions through

Define the following terms and explain their importance to the study of macroeconomics: a. aggregation b. recession c. gross domestic product d. final goods and services e. stabilization policy

Figure 5-2 -To fight inflation,the government may

The existence of the "underground economy" causes measured GDP to overestimate actual output.