Exam 5: Introduction to Macroeconomics

The field of macroeconomics was considered an extension of microeconomics prior to the Great Depression.

_____ are almost 70% of GDP, while _____ are about 17% of GDP.

Suppose the yield on a 3-month Treasury bill is 0.5% and the 10-year Treasury note yields 2.67%. State whether the slope of this yield curve indicates if the economy may be headed for a recession, and support your answer.

The national income and product accounts ignore nonmarket transactions, investments in human capital, and the use of people's leisure time.

We are MOST likely to see a recession if interest rates on long-term bonds are _____, and interest rates on short-term bonds are _____.

When interest rates on short-term bonds exceed those on long-term bonds, a recession is likely to occur.

Which statement is correct?

A major reason to collect economic data for national income and product accounts is to guide the government in appropriate economic policy.

The _____ is/are equal to the total market value of all final goods and services produced in the United States.

Childcare provided by a nanny is not included in the GDP if the parents pay the nanny "under the table."

We are MOST likely to see a recession if interest rates on long-term bonds are

If a business increases its inventories, the change is treated as an investment.

A double-dip recession is a recession that is twice as bad as the one that preceded it.

Developing countries tend to place a higher value on environmental quality than developed countries do.

Which transaction would be included in the national income and product accounts?

The value of cars that the Ford Motor Company produces in a German plant is

Simon Kuznets

The National Bureau of Economic Research is a government agency.

The _____ is a weighted average of 85 indicators of aggregate economic performance, designed to pinpoint signs of a recession in a reasonable time frame.

Whose analysis serves as the foundation of modern macroeconomics?