Exam 6: An Introduction to Macroeconomics

"Households are the principal source of savings. But businesses are the main economic investors." How does the pool of savings by households get transferred to businesses?

Inflation is defined as

What is the opportunity cost of unemployment for an economy?

There is a trade-off between

Economists believe that most short-run fluctuations

Which of the following statements about price wars is true?

If nominal GDP increases from one year to the next, then we know that the economy's output has grown.

Which of the following statements is accurate about most economies?

Which of the following statements about price stickiness or flexibility is true?

China's GDP per person in 2017 was less than one-third of U.S. GDP per person in the same year.

Which among the following countries had the highest GDP per person in 2017?

Suppose that an economy's output does not change from one year to the next, but the price level doubles. What happens to nominal GDP?

Investment is ultimately limited by the amount of savings in the economy.

Rapid and sustained economic growth of nations

High rates of unemployment

In macroeconomic models, prices are assumed to be completely inflexible in

If nominal GDP is rising faster than real GDP, then inflation must be occurring.

Situations in which firms expect one thing to happen but then something else happens are called

Saving in the economy

Savings are generated whenever