Question 1

Gross Domestic Product is a dollar measure of

Accepted Answer

A)  total gross investment in an economy. 
B)  total industrial sales in a particular time period. 
C)  the total physical product of the economy. 
D)  the value of all final goods and services produced in one time period. 
A)  total gross investment in an economy. 
B)  total industrial sales in a particular time period. 
C)  the total physical product of the economy. 
D)  the value of all final goods and services produced in one time period.

Question 2

According to Keynes, a pessimistic outlook causes consumers and businesspersons to ____, and a recession could occur.

Accepted Answer

A)  increase planned investment 
B)  decrease planned spending 
C)  increase exports 
D)  decrease imports 
E)  decrease saving 
A)  increase planned investment 
B)  decrease planned spending 
C)  increase exports 
D)  decrease imports 
E)  decrease saving

Question 3

GDP consistently measures the output of goods and services in all countries.

Accepted Answer

A) True 
 B)False

Question 4

Macroeconomic models use abstract concepts such as "price level" and "national income" that are calculated by combining many markets into one.This process is known as

Accepted Answer

A)  analysis and synthesis. 
B)  integration and derivation. 
C)  conceptualization. 
D)  aggregation. 
A)  analysis and synthesis. 
B)  integration and derivation. 
C)  conceptualization. 
D)  aggregation.

Question 5

Technically speaking, in what year did the "Great Recession" end?

Accepted Answer

A)  1933 
B)  1935 
C)  2007 
D)  2009 
E)  It had not ended as of 2011. 
A)  1933 
B)  1935 
C)  2007 
D)  2009 
E)  It had not ended as of 2011.

Question 6

The name given to government programs implemented to prevent or shorten recessions and counteract inflation is

Accepted Answer

A)  supply-side economics. 
B)  contractionary policy. 
C)  monetary policy. 
D)  stabilization policy. 
A)  supply-side economics. 
B)  contractionary policy. 
C)  monetary policy. 
D)  stabilization policy.

Question 7

The stagflation in the United States during the 1974-1975 period can be attributed to

Accepted Answer

A)  increases in real GDP due to high levels of defense spending. 
B)  tight monetary and fiscal policies of the Nixon-Ford administrations. 
C)  rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls. 
D)  budget deficits by the federal government and increasing trade deficits by the United States. 
A)  increases in real GDP due to high levels of defense spending. 
B)  tight monetary and fiscal policies of the Nixon-Ford administrations. 
C)  rapid increases in petroleum prices, poor harvests, and the removal of wage and price controls. 
D)  budget deficits by the federal government and increasing trade deficits by the United States.

Question 8

The price controls on consumer goods during World War II led to

Accepted Answer

A)  permanent surpluses. 
B)  stable long-term prices. 
C)  a burst of inflation when they were ended. 
D)  increased production of consumer goods to satisfy demand. 
A)  permanent surpluses. 
B)  stable long-term prices. 
C)  a burst of inflation when they were ended. 
D)  increased production of consumer goods to satisfy demand.

Question 9

Contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period.Use the appropriate aggregate demand and aggregate supply curves to distinguish the differing economic condition of the two periods.

Accepted Answer

The economic performance of the 1996 to

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

The election campaign of George Bush to succeed Ronald Reagan as president was

Accepted Answer

A)  hindered due to high levels of unemployment in 1988. 
B)  hindered by the increasing inflationary problems of the late 1980s. 
C)  helped by the budget surpluses generated in the last years of the Reagan administration. 
D)  helped by the continuing low levels of unemployment and inflation in 1988. 
A)  hindered due to high levels of unemployment in 1988. 
B)  hindered by the increasing inflationary problems of the late 1980s. 
C)  helped by the budget surpluses generated in the last years of the Reagan administration. 
D)  helped by the continuing low levels of unemployment and inflation in 1988.

Question 12

The first year of the Bush administration in 2001 could be represented as a(n)

Accepted Answer

A)  increase in the aggregate demand curve. 
B)  decrease in the aggregate demand curve. 
C)  increase in the aggregate supply curve. 
D)  decrease in the aggregate supply curve. 
A)  increase in the aggregate demand curve. 
B)  decrease in the aggregate demand curve. 
C)  increase in the aggregate supply curve. 
D)  decrease in the aggregate supply curve.

Question 13

Aggregation involves adding together different products and services.

Accepted Answer

A) True 
 B)False

Question 14

You can generally distinguish an aggregate supply-caused recession from an aggregate demand-caused recession because

Accepted Answer

A)  real GDP will rise in an aggregate supply recession. 
B)  the price level will fall in an aggregate supply recession. 
C)  the price level will fall in an aggregate demand recession. 
D)  real GDP will rise in an aggregate demand recession. 
A)  real GDP will rise in an aggregate supply recession. 
B)  the price level will fall in an aggregate supply recession. 
C)  the price level will fall in an aggregate demand recession. 
D)  real GDP will rise in an aggregate demand recession.

Question 15

Macroeconomists are distinguished from microeconomists because macroeconomists are more interested in

Accepted Answer

A)  inflation and unemployment than in individual markets. 
B)  large corporations rather than small businesses. 
C)  inflation in the United States rather than inflation in Costa Rica. 
D)  the demand for oil rather than the demand for corn. 
A)  inflation and unemployment than in individual markets. 
B)  large corporations rather than small businesses. 
C)  inflation in the United States rather than inflation in Costa Rica. 
D)  the demand for oil rather than the demand for corn.

Question 16

While their respective subject matters differ greatly, both microeconomists and macroeconomists rely on the same basic tools; that is, both rely on

Accepted Answer

A)  government contracts to promote research and publications. 
B)  demand-and-supply analysis. 
C)  the economic theory of John Maynard Keynes. 
D)  consumer protection laws and antitrust legislation. 
A)  government contracts to promote research and publications. 
B)  demand-and-supply analysis. 
C)  the economic theory of John Maynard Keynes. 
D)  consumer protection laws and antitrust legislation.

Question 17

The definition of Gross Domestic Product is

Accepted Answer

A)  the total value of all sales in the economy. 
B)  the total value of production in the domestic economy plus the production of domestic firms in foreign countries. 
C)  the total value of all sales of final and intermediate goods in the domestic economy. 
D)  the total of the money values of all final goods and services produced in the domestic economy within a specific time period. 
A)  the total value of all sales in the economy. 
B)  the total value of production in the domestic economy plus the production of domestic firms in foreign countries. 
C)  the total value of all sales of final and intermediate goods in the domestic economy. 
D)  the total of the money values of all final goods and services produced in the domestic economy within a specific time period.

Question 18

Macroeconomists pay little attention to the composition of aggregate output.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

a.Aggregation means combining many indiv

Question 20

Abstract terms like "cost of living" and "price level" are meaningless to ordinary individuals.

Accepted Answer

A) True 
 B)False

Exam 22: An Introduction to Macroeconomics

Gross Domestic Product is a dollar measure of

According to Keynes, a pessimistic outlook causes consumers and businesspersons to ____, and a recession could occur.

GDP consistently measures the output of goods and services in all countries.

Macroeconomic models use abstract concepts such as "price level" and "national income" that are calculated by combining many markets into one.This process is known as

Technically speaking, in what year did the "Great Recession" end?

The name given to government programs implemented to prevent or shorten recessions and counteract inflation is

The stagflation in the United States during the 1974-1975 period can be attributed to

The price controls on consumer goods during World War II led to

Contrast the economic performance of the American economy of 2001 with the economic performance of the 1996 to 2001 period.Use the appropriate aggregate demand and aggregate supply curves to distinguish the differing economic condition of the two periods.

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

The election campaign of George Bush to succeed Ronald Reagan as president was

The first year of the Bush administration in 2001 could be represented as a(n)

Aggregation involves adding together different products and services.

You can generally distinguish an aggregate supply-caused recession from an aggregate demand-caused recession because

Macroeconomists are distinguished from microeconomists because macroeconomists are more interested in

While their respective subject matters differ greatly, both microeconomists and macroeconomists rely on the same basic tools; that is, both rely on

The definition of Gross Domestic Product is

Macroeconomists pay little attention to the composition of aggregate output.

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

Abstract terms like "cost of living" and "price level" are meaningless to ordinary individuals.

What Is Economics?

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: An Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: The Importance of Marginal Analysis

Securities: Business Finance, and the Economy: The Tail that Wags the Dog?

The Firm and the Industry under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

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