Exam 21: An Introduction to Macroeconomics

Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy.Figure 5-3 shows four diagrams that represent different changes in the macroeconomy.Choose the diagram that best represents the situations described in the following questions. Figure 5-3 -Which graph in Figure 5-3 best represents the supply-side shock of the 1970s oil crisis?

The composition of demand and supply is relatively unimportant to the study of inflation and unemployment rates.

Aneta has owned an Italian sports car for several years and now she wants to sell it.She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015.How is this sale included in the GDP for 2015?

E&S Cooling Co.installs air conditioning systems in new houses for homebuilders and replacement systems for homeowners.Sales of which systems are included in this year's GDP?

Dissatisfaction with public school education has led many parents to try home schooling for their children.If parents reduce their work from a full-time to a part-time load in order to spend time teaching their children at home, how will this affect GDP?

Two of the most important macroeconomic issues are unemployment and inflation.

To fight recession, the government may

Large sport utility vehicles (SUVs) add significantly to air pollution because they do not have to meet passenger auto emission standards.The purchase of an SUV

GDP cannot be used for international comparisons because

In the early 1980s, the economy experienced high unemployment with falling inflation.

Gross domestic product includes the sale of intermediate goods and services.

Real GDP is another term for

A real estate salesperson sells a house in 2015 that was built in 2005.How does this transaction get counted in the GDP statistics?

The human consequences of the Great Depression did not include

Before the Great Depression of the 1930s, most economists believed that

Real GDP differs from nominal GDP in that nominal GDP measures

The U.S.GDP includes

In the aggregate demand-aggregate supply model, a decrease in income taxes can be illustrated by an

Macroeconomists pay little attention to the composition of aggregate output.

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