Question 1

In the period of U.S.economic history known as the Great Depression, the rate of inflation was generally

Accepted Answer

A) trending upward. 
B) positive. 
C) uncertain. 
D) negative. 
A) trending upward. 
B) positive. 
C) uncertain. 
D) negative.

Question 2

The successes of the 1960s were ascribed to the effects of

Accepted Answer

A) classical policies from the 1800s. 
B) classical policies from the 1930s. 
C) classical policies from the 1950s. 
D) Keynesian policies from the 1930s. 
E) Keynesian policies from the 1950s. 
A) classical policies from the 1800s. 
B) classical policies from the 1930s. 
C) classical policies from the 1950s. 
D) Keynesian policies from the 1930s. 
E) Keynesian policies from the 1950s.

Question 3

During the Great Depression of the 1930s, unemployment peaked at _____ percent.

Accepted Answer

A) 5 
B) 10 
C) 20 
D) 25 
E) 30 percent 
A) 5 
B) 10 
C) 20 
D) 25 
E) 30 percent

Question 4

From 2000 to 2001, the U.S.economy's annual growth rate slowed down abruptly.

Accepted Answer

A) True 
 B)False

Question 5

Macroeconomists differ from microeconomists because macroeconomists focus on the study of

Accepted Answer

A) inflation, unemployment, and GDP than in individual markets. 
B) market prices than the cost of living. 
C) inflation in the United States rather than inflation in Puerto Rico. 
D) tariffs than global trade. 
A) inflation, unemployment, and GDP than in individual markets. 
B) market prices than the cost of living. 
C) inflation in the United States rather than inflation in Puerto Rico. 
D) tariffs than global trade.

Question 6

The period of 1973 to 1980 can best be described as a time of

Accepted Answer

A) deflation. 
B) reflation. 
C) unflation. 
D) stagflation. 
E) disflation. 
A) deflation. 
B) reflation. 
C) unflation. 
D) stagflation. 
E) disflation.

Question 7

Economic aggregates are studied by microeconomists.

Accepted Answer

A) True 
 B)False

Question 8

If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience

Accepted Answer

A) unemployment. 
B) budget surpluses. 
C) stagflation. 
D) inflation. 
A) unemployment. 
B) budget surpluses. 
C) stagflation. 
D) inflation.

Question 9

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

Accepted Answer

A) True 
 B)False

Question 10

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time.This suggests that the primary cause of the recession was an

Accepted Answer

A) inward shift of the aggregate demand curve. 
B) outward shift of the aggregate supply curve. 
C) inward shift of the aggregate supply curve. 
D) outward shift of the aggregate demand curve. 
A) inward shift of the aggregate demand curve. 
B) outward shift of the aggregate supply curve. 
C) inward shift of the aggregate supply curve. 
D) outward shift of the aggregate demand curve.

Question 11

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 12

Combating recession may require the government to

Accepted Answer

A) decrease aggregate supply. 
B) increase aggregate demand. 
C) decrease aggregate demand. 
D) decrease government spending. 
A) decrease aggregate supply. 
B) increase aggregate demand. 
C) decrease aggregate demand. 
D) decrease government spending.

Question 13

The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of

Accepted Answer

A) low unemployment and decreasing inflation rates. 
B) low unemployment and increasing budget deficits. 
C) low unemployment and increasing interest rates. 
D) high unemployment and increasing inflation rates. 
A) low unemployment and decreasing inflation rates. 
B) low unemployment and increasing budget deficits. 
C) low unemployment and increasing interest rates. 
D) high unemployment and increasing inflation rates.

Question 14

For a macroeconomist, the case for aggregation is based on two principles-(1) the composition of demand and supply may not matter for some purposes and (2)

Accepted Answer

A) during fluctuations markets normally move together. 
B) individual markets allocate resources efficiently. 
C) inflation, unemployment, and growth never go together. 
D) individual markets distribute income efficiently. 
A) during fluctuations markets normally move together. 
B) individual markets allocate resources efficiently. 
C) inflation, unemployment, and growth never go together. 
D) individual markets distribute income efficiently.

Question 15

Gross domestic product is best described as the

Accepted Answer

A) measure of a nation's total economic welfare. 
B) national income, including nonmarket income. 
C) sum of money values of all final output produced in the domestic economy within the year. 
D) national output minus environmental damage. 
A) measure of a nation's total economic welfare. 
B) national income, including nonmarket income. 
C) sum of money values of all final output produced in the domestic economy within the year. 
D) national output minus environmental damage.

Question 16

GDP stagnated during the Obama presidency.

Accepted Answer

A) True 
 B)False

Question 17

In 2015, Richard buys a 2003 Chevrolet minivan from a neighbor.Will this be counted in the GDP for 2015?

Accepted Answer

A) Yes 
B) No 
C) Yes, if sales tax is paid 
D) No, because the purchase was from an individual not a dealer 
A) Yes 
B) No 
C) Yes, if sales tax is paid 
D) No, because the purchase was from an individual not a dealer

Question 18

Tony Stark and Steve Rogers decide to build a new gym, rather than lift weights at home.This decision

Accepted Answer

A) decreases nominal GDP. 
B) decreases real GDP. 
C) increases GDP. 
D) has no impact on GDP. 
A) decreases nominal GDP. 
B) decreases real GDP. 
C) increases GDP. 
D) has no impact on GDP.

Question 19

How does macroeconomics differ from microeconomics?

Accepted Answer

A) The study of the opportunity cost of nations versus the opportunity cost of individuals 
B) The underlying principles 
C) The use of abstractions and models 
D) The use of aggregate indicators over market resource allocation 
A) The study of the opportunity cost of nations versus the opportunity cost of individuals 
B) The underlying principles 
C) The use of abstractions and models 
D) The use of aggregate indicators over market resource allocation

Question 20

Inflation refers to an increase in the

Accepted Answer

A) price level. 
B) rate of inflation. 
C) total income. 
D) real GDP. 
A) price level. 
B) rate of inflation. 
C) total income. 
D) real GDP.

Exam 21: An Introduction to Macroeconomics

In the period of U.S.economic history known as the Great Depression, the rate of inflation was generally

The successes of the 1960s were ascribed to the effects of

During the Great Depression of the 1930s, unemployment peaked at _____ percent.

From 2000 to 2001, the U.S.economy's annual growth rate slowed down abruptly.

Macroeconomists differ from microeconomists because macroeconomists focus on the study of

The period of 1973 to 1980 can best be described as a time of

Economic aggregates are studied by microeconomists.

If aggregate demand shifts inward over a long period of time, with aggregate supply held constant, the economy should experience

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time.This suggests that the primary cause of the recession was an

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

Combating recession may require the government to

The macroeconomic conditions during the mid-1990s confounded many economists because of the simultaneous occurrence of

For a macroeconomist, the case for aggregation is based on two principles-(1) the composition of demand and supply may not matter for some purposes and (2)

Gross domestic product is best described as the

GDP stagnated during the Obama presidency.

In 2015, Richard buys a 2003 Chevrolet minivan from a neighbor.Will this be counted in the GDP for 2015?

Tony Stark and Steve Rogers decide to build a new gym, rather than lift weights at home.This decision

How does macroeconomics differ from microeconomics?

Inflation refers to an increase in the

What Is Economics

The Economony: 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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

The Economics of 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

Contemporary Issues in the Useconomy

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