Question 1

An economic variable that is measured per unit of time,such as spending per year,is known as a:

Accepted Answer

A) stock variable. 
B) periodic variable. 
C) dummy variable. 
D) flow variable. 
E) controlled variable. 
A) stock variable. 
B) periodic variable. 
C) dummy variable. 
D) flow variable. 
E) controlled variable.

Question 2

Macroeconomics is a branch of economics that studies:

Accepted Answer

A) the different costs associated with production. 
B) the price and output decisions made by different industries. 
C) the overall performance of the economy. 
D) the role of a market in determining an efficient outcome. 
E) the role of input suppliers in determining the price and quantity of output. 
A) the different costs associated with production. 
B) the price and output decisions made by different industries. 
C) the overall performance of the economy. 
D) the role of a market in determining an efficient outcome. 
E) the role of input suppliers in determining the price and quantity of output.

Question 3

The global financial panic in September 2008 that led to a sharp fall in business investment spending and consumer spending can be viewed as:

Accepted Answer

A) a sharp decrease in aggregate supply. 
B) a sharp decrease in aggregate demand. 
C) a sharp decrease in both aggregate supply and aggregate demand. 
D) a modest increase in aggregate supply. 
E) a modest increase in both aggregate demand and aggregate supply. 
A) a sharp decrease in aggregate supply. 
B) a sharp decrease in aggregate demand. 
C) a sharp decrease in both aggregate supply and aggregate demand. 
D) a modest increase in aggregate supply. 
E) a modest increase in both aggregate demand and aggregate supply.

Question 4

Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?

Accepted Answer

A) A decrease in investment spending 
B) An increase in the rate of inflation 
C) An increase in unemployment 
D) A decrease in the rate of inflation 
E) A decrease in real GDP 
A) A decrease in investment spending 
B) An increase in the rate of inflation 
C) An increase in unemployment 
D) A decrease in the rate of inflation 
E) A decrease in real GDP

Question 5

According to Keynes,if private sector demand is insufficient to maintain full employment,the government should:

Accepted Answer

A) make the economy's natural transition to a lower level of employment as easy as possible. 
B) shock the economy with an increase in aggregate demand. 
C) reduce aggregate supply to reduce inflation. 
D) print money to promote consumer spending. 
E) take steps to increase aggregate supply in an economy. 
A) make the economy's natural transition to a lower level of employment as easy as possible. 
B) shock the economy with an increase in aggregate demand. 
C) reduce aggregate supply to reduce inflation. 
D) print money to promote consumer spending. 
E) take steps to increase aggregate supply in an economy.

Question 6

Which of the following decades is known as the "Golden Age of Keynesian Economics"?

Accepted Answer

A) The 1930s 
B) The 1950s 
C) The 1960s 
D) The 1970s 
E) The 1980s 
A) The 1930s 
B) The 1950s 
C) The 1960s 
D) The 1970s 
E) The 1980s

Question 7

Which of these is the most ideal measure of aggregate output?

Accepted Answer

A) Disposable income 
B) Nominal GDP 
C) Personal income 
D) The real GDP 
E) Gross national product 
A) Disposable income 
B) Nominal GDP 
C) Personal income 
D) The real GDP 
E) Gross national product

Question 8

The word stagflation describes a situation in which:

Accepted Answer

A) a higher price level occurs simultaneously with higher employment. 
B) a lower price level occurs simultaneously with economic growth. 
C) a higher price level occurs simultaneously with lower aggregate output. 
D) a lower price level occurs simultaneously with federal budget deficits. 
E) a higher price level occurs simultaneously with federal budget surpluses. 
A) a higher price level occurs simultaneously with higher employment. 
B) a lower price level occurs simultaneously with economic growth. 
C) a higher price level occurs simultaneously with lower aggregate output. 
D) a lower price level occurs simultaneously with federal budget deficits. 
E) a higher price level occurs simultaneously with federal budget surpluses.

Question 9

An example of a flow variable in economics is:

Accepted Answer

A) the total amount of bank loan taken by Emily. 
B) the value of an apartment owned by Jerome. 
C) the price of an antique painting used to decorate an office. 
D) the earnings of Malaya from piano classes each month. 
E) the total value of the U.S.treasury bonds held by China. 
A) the total amount of bank loan taken by Emily. 
B) the value of an apartment owned by Jerome. 
C) the price of an antique painting used to decorate an office. 
D) the earnings of Malaya from piano classes each month. 
E) the total value of the U.S.treasury bonds held by China.

Question 10

Which of the following is true of a recession?

Accepted Answer

A) It is typically accompanied by inflation and investment growth. 
B) It lasts for more than two years on an average. 
C) It is typically longer than periods of expansion. 
D) It begins after an expansion has peaked. 
E) It continues as long as actual output exceeds the potential output. 
A) It is typically accompanied by inflation and investment growth. 
B) It lasts for more than two years on an average. 
C) It is typically longer than periods of expansion. 
D) It begins after an expansion has peaked. 
E) It continues as long as actual output exceeds the potential output.

Question 11

Confidence in Keynesian economics:

Accepted Answer

A) diminished in the 1960s as the unemployment rate fell. 
B) flourished in the 1960s despite two major recessions. 
C) diminished in the 1960s as unemployment increased. 
D) diminished in the 1970s as inflation occurred simultaneously with two recessions. 
E) flourished through the 1980s despite Reagan's supply-side policies. 
A) diminished in the 1960s as the unemployment rate fell. 
B) flourished in the 1960s despite two major recessions. 
C) diminished in the 1960s as unemployment increased. 
D) diminished in the 1970s as inflation occurred simultaneously with two recessions. 
E) flourished through the 1980s despite Reagan's supply-side policies.

An economic variable that is measured per unit of time,such as spending per year,is known as a:

Macroeconomics is a branch of economics that studies:

The global financial panic in September 2008 that led to a sharp fall in business investment spending and consumer spending can be viewed as:

Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?

According to Keynes,if private sector demand is insufficient to maintain full employment,the government should:

Which of the following decades is known as the "Golden Age of Keynesian Economics"?

Which of these is the most ideal measure of aggregate output?

The word stagflation describes a situation in which:

An example of a flow variable in economics is:

Which of the following is true of a recession?

Confidence in Keynesian economics:

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

An economic variable that is measured per unit of time,such as spending per year,is known as a:

Macroeconomics is a branch of economics that studies:

The global financial panic in September 2008 that led to a sharp fall in business investment spending and consumer spending can be viewed as:

Which of these is most likely to result when a demand-management policy is used in an economy that is experiencing stagflation?

According to Keynes,if private sector demand is insufficient to maintain full employment,the government should:

Which of the following decades is known as the "Golden Age of Keynesian Economics"?

Which of these is the most ideal measure of aggregate output?

The word stagflation describes a situation in which:

An example of a flow variable in economics is:

Which of the following is true of a recession?

Confidence in Keynesian economics:

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