Question 1

Which of the following concepts is not included in the study of macroeconomics?

Accepted Answer

A) The unemployment level 
B) The inflation rate 
C) The real income 
D) The profit-maximizing condition 
E) The role of government 
A) The unemployment level 
B) The inflation rate 
C) The real income 
D) The profit-maximizing condition 
E) The role of government

Question 2

If the U.S.price level increases relative to price levels in foreign countries,_____.

Accepted Answer

A) the aggregate supply curve for the U.S.will shift outward and the aggregate demand curve would remain unchanged 
B) the aggregate supply curve for the U.S.will shift inward and the aggregate demand curve would remain unchanged 
C) the aggregate demand curve for the U.S.will shift outward and the aggregate supply curve would remain unchanged 
D) the aggregate demand curve for the U.S.will shift inward and the aggregate supply curve would remain unchanged 
E) both the aggregate demand and the aggregate supply curves for the U.S.will shift outward 
A) the aggregate supply curve for the U.S.will shift outward and the aggregate demand curve would remain unchanged 
B) the aggregate supply curve for the U.S.will shift inward and the aggregate demand curve would remain unchanged 
C) the aggregate demand curve for the U.S.will shift outward and the aggregate supply curve would remain unchanged 
D) the aggregate demand curve for the U.S.will shift inward and the aggregate supply curve would remain unchanged 
E) both the aggregate demand and the aggregate supply curves for the U.S.will shift outward

Question 3

By a leading economic indicator,economists mean:

Accepted Answer

A) an indicator of future economic activity. 
B) an indicator that reflects economic fluctuations as they occur. 
C) a highly accurate indicator that is easily measured. 
D) an indicator that predicts the level of inflation in an economy. 
E) any variable that follows changes in economic activity. 
A) an indicator of future economic activity. 
B) an indicator that reflects economic fluctuations as they occur. 
C) a highly accurate indicator that is easily measured. 
D) an indicator that predicts the level of inflation in an economy. 
E) any variable that follows changes in economic activity.

Question 4

The tax cuts passed during the Reagan administration were designed primarily to:

Accepted Answer

A) boost savings among consumers. 
B) shift the aggregate demand curve rightward. 
C) reduce the balance-of-payments deficit. 
D) increase the supply of productive resources. 
E) increase the tax base and include more tax payers. 
A) boost savings among consumers. 
B) shift the aggregate demand curve rightward. 
C) reduce the balance-of-payments deficit. 
D) increase the supply of productive resources. 
E) increase the tax base and include more tax payers.

Question 5

When economists refer to an economy's price level,they indicate:

Accepted Answer

A) the rate of inflation in that economy. 
B) the prices of goods and services relative to consumers' incomes. 
C) a composite measure of prices of all goods and services. 
D) a period of level,or steady,prices in that economy. 
E) the price of a specific consumer good. 
A) the rate of inflation in that economy. 
B) the prices of goods and services relative to consumers' incomes. 
C) a composite measure of prices of all goods and services. 
D) a period of level,or steady,prices in that economy. 
E) the price of a specific consumer good.

Question 6

A key difference between recessions and depressions is that recessions are:

Accepted Answer

A) longer than depressions. 
B) more severe than depressions. 
C) accompanied by price increases,while depressions are accompanied by price decreases. 
D) shorter and less severe than depressions. 
E) accompanied by price decreases,while depressions are accompanied by price increases. 
A) longer than depressions. 
B) more severe than depressions. 
C) accompanied by price increases,while depressions are accompanied by price decreases. 
D) shorter and less severe than depressions. 
E) accompanied by price decreases,while depressions are accompanied by price increases.

Question 7

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

Accepted Answer

A) True 
 B)False

Question 8

Which of these is a lagging economic indicator?

Accepted Answer

A) The unemployment rate 
B) Personal income 
C) Industrial production 
D) Total employment 
E) Fluctuations in stock prices 
A) The unemployment rate 
B) Personal income 
C) Industrial production 
D) Total employment 
E) Fluctuations in stock prices

Question 9

Which of the following is the significance of a country's price index?

Accepted Answer

A) It helps in measuring changes in the nominal interest rate in a country. 
B) It helps in measuring the total disposable income of a country. 
C) It helps in determining a country's real GDP each year. 
D) It helps in measuring changes in the prices of only luxury goods. 
E) It helps in measuring the demand for goods and services exported by a country. 
A) It helps in measuring changes in the nominal interest rate in a country. 
B) It helps in measuring the total disposable income of a country. 
C) It helps in determining a country's real GDP each year. 
D) It helps in measuring changes in the prices of only luxury goods. 
E) It helps in measuring the demand for goods and services exported by a country.

Question 10

Which of these is a coincident economic indicator?

Accepted Answer

A) The demand for plant and machinery 
B) Personal income 
C) Real estate growth 
D) The interest rate 
E) The unemployment rate 
A) The demand for plant and machinery 
B) Personal income 
C) Real estate growth 
D) The interest rate 
E) The unemployment rate

Question 11

A rise in the price level will:

Accepted Answer

A) cause an upward movement along the aggregate demand curve. 
B) cause a downward movement along the aggregate demand curve. 
C) cause a leftward shift of the aggregate demand curve. 
D) cause a rightward shift of the aggregate demand curve. 
E) have no impact on the aggregate demand curve. 
A) cause an upward movement along the aggregate demand curve. 
B) cause a downward movement along the aggregate demand curve. 
C) cause a leftward shift of the aggregate demand curve. 
D) cause a rightward shift of the aggregate demand curve. 
E) have no impact on the aggregate demand curve.

Question 12

Which of these describes the real gross domestic product?

Accepted Answer

A) Gross domestic product from which depreciation costs have been deducted 
B) Gross domestic product that has been adjusted for changes in the price level 
C) Gross domestic product from which taxes have been deducted 
D) Gross domestic product that has been adjusted for changes in exchange rate 
E) Gross domestic product that has been adjusted for changes in interest rates 
A) Gross domestic product from which depreciation costs have been deducted 
B) Gross domestic product that has been adjusted for changes in the price level 
C) Gross domestic product from which taxes have been deducted 
D) Gross domestic product that has been adjusted for changes in exchange rate 
E) Gross domestic product that has been adjusted for changes in interest rates

Question 13

The recession that set in after December 2007 can be attributed to:

Accepted Answer

A) an increase in expenditure on war. 
B) a decline in home prices and an increase in foreclosures. 
C) an increase in terrorist activities. 
D) crop failures around the world. 
E) an increase in oil prices in the international market. 
A) an increase in expenditure on war. 
B) a decline in home prices and an increase in foreclosures. 
C) an increase in terrorist activities. 
D) crop failures around the world. 
E) an increase in oil prices in the international market.

Question 14

If the price level in the U.S.decreases,aggregate output demanded:

Accepted Answer

A) decreases because U.S.products become cheaper relative to foreign products. 
B) decreases because U.S.products become more expensive relative to foreign products. 
C) increases because U.S.products become cheaper relative to foreign products. 
D) increases because U.S.products become more expensive relative to foreign products. 
E) decreases because household wealth and spending in the U.S.decrease. 
A) decreases because U.S.products become cheaper relative to foreign products. 
B) decreases because U.S.products become more expensive relative to foreign products. 
C) increases because U.S.products become cheaper relative to foreign products. 
D) increases because U.S.products become more expensive relative to foreign products. 
E) decreases because household wealth and spending in the U.S.decrease.

Question 15

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:​

Accepted Answer

A) 0.5 billion. 
B) 1 billion. 
C) 8.3 billion. 
D) 258.3 billion. 
E) 2 billion. 
A) 0.5 billion. 
B) 1 billion. 
C) 8.3 billion. 
D) 258.3 billion. 
E) 2 billion.

Question 16

Which of the following can be concluded about the long-run performance of the U.S.economy?

Accepted Answer

A) It has been able to create employment opportunities but only at the cost of high inflation. 
B) It has failed to generate sufficient aggregate demand in the economy. 
C) It has been one of the most productive economies in the world in terms of growth in real GDP. 
D) It has focused fiscal policies mostly at improving aggregate supply. 
E) It has suffered from huge fiscal deficits that dampened economic growth. 
A) It has been able to create employment opportunities but only at the cost of high inflation. 
B) It has failed to generate sufficient aggregate demand in the economy. 
C) It has been one of the most productive economies in the world in terms of growth in real GDP. 
D) It has focused fiscal policies mostly at improving aggregate supply. 
E) It has suffered from huge fiscal deficits that dampened economic growth.

Question 17

A period of sustained growth in output in an economy is referred to as a(n)_____.

Accepted Answer

A) expansion 
B) contraction 
C) peak 
D) trough 
E) recession 
A) expansion 
B) contraction 
C) peak 
D) trough 
E) recession

Question 18

Which of the following statements about leading economic indicators is true?

Accepted Answer

A) Most people refer to them before making any important spending decision. 
B) They are the only economic indicators available to economists. 
C) They indicate when an economy is in a recession or an expansion. 
D) They foreshadow turning points in the business cycle. 
E) They can predict precisely when turning points in an economy will occur. 
A) Most people refer to them before making any important spending decision. 
B) They are the only economic indicators available to economists. 
C) They indicate when an economy is in a recession or an expansion. 
D) They foreshadow turning points in the business cycle. 
E) They can predict precisely when turning points in an economy will occur.

Question 19

The aggregate demand curve for an economy depicts the:

Accepted Answer

A) quantity of goods and services demanded during a given time period at different interest rates,other things held constant. 
B) quantity of goods and services demanded at different price levels during different time periods,other things held constant. 
C) quantity of goods and services demanded at different price levels during a given time period,other things held constant. 
D) quantity of goods and services that the economy is capable of producing during a given time period,other things held constant. 
E) final quantity of goods and services actually produced by the economy during a given time period,other things held constant. 
A) quantity of goods and services demanded during a given time period at different interest rates,other things held constant. 
B) quantity of goods and services demanded at different price levels during different time periods,other things held constant. 
C) quantity of goods and services demanded at different price levels during a given time period,other things held constant. 
D) quantity of goods and services that the economy is capable of producing during a given time period,other things held constant. 
E) final quantity of goods and services actually produced by the economy during a given time period,other things held constant.

Question 20

The ultimate objective of macroeconomics is to:

Accepted Answer

A) reduce the unemployment rate in an economy. 
B) stabilize the growth rate in an economy. 
C) develop and test theories about how the overall economy works. 
D) improve the international competitiveness of U.S.financial markets. 
E) maximize the efficiency of government intervention in the marketplace. 
A) reduce the unemployment rate in an economy. 
B) stabilize the growth rate in an economy. 
C) develop and test theories about how the overall economy works. 
D) improve the international competitiveness of U.S.financial markets. 
E) maximize the efficiency of government intervention in the marketplace.

Which of the following concepts is not included in the study of macroeconomics?

If the U.S.price level increases relative to price levels in foreign countries,_____.

By a leading economic indicator,economists mean:

The tax cuts passed during the Reagan administration were designed primarily to:

When economists refer to an economy's price level,they indicate:

A key difference between recessions and depressions is that recessions are:

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

Which of these is a lagging economic indicator?

Which of the following is the significance of a country's price index?

Which of these is a coincident economic indicator?

A rise in the price level will:

Which of these describes the real gross domestic product?

The recession that set in after December 2007 can be attributed to:

If the price level in the U.S.decreases,aggregate output demanded:

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:

Which of the following can be concluded about the long-run performance of the U.S.economy?

A period of sustained growth in output in an economy is referred to as a(n)_____.

Which of the following statements about leading economic indicators is true?

The aggregate demand curve for an economy depicts the:

The ultimate objective of macroeconomics is to:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 5: Introduction to Macroeconomics

Which of the following concepts is not included in the study of macroeconomics?

If the U.S.price level increases relative to price levels in foreign countries,_____.

By a leading economic indicator,economists mean:

The tax cuts passed during the Reagan administration were designed primarily to:

When economists refer to an economy's price level,they indicate:

A key difference between recessions and depressions is that recessions are:

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

Which of these is a lagging economic indicator?

Which of the following is the significance of a country's price index?

Which of these is a coincident economic indicator?

A rise in the price level will:

Which of these describes the real gross domestic product?

The recession that set in after December 2007 can be attributed to:

If the price level in the U.S.decreases,aggregate output demanded:

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:​

Which of the following can be concluded about the long-run performance of the U.S.economy?

A period of sustained growth in output in an economy is referred to as a(n)_____.

Which of the following statements about leading economic indicators is true?

The aggregate demand curve for an economy depicts the:

The ultimate objective of macroeconomics is to:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was: