Question 1

In contrast to the typical Republican Party laissez-faire policies, President Richard Nixon in 1971 introduced

Accepted Answer

A)  mandatory drug testing of cabinet officers. 
B)  monetary targets for the Federal Reserve Board. 
C)  wage and price controls. 
D)  mandatory gold purchases by the U.S. Treasury. 
A)  mandatory drug testing of cabinet officers. 
B)  monetary targets for the Federal Reserve Board. 
C)  wage and price controls. 
D)  mandatory gold purchases by the U.S. Treasury.

Question 2

Consider the economic impact of Hurricane Florence in 2018. Which of the following statements is correct?

Accepted Answer

A)  Spending toward reconstruction would lead to an increase in GDP. 
B)  Increased government spending on relief efforts in the United States would decrease GDP. 
C)  Damaged buildings and looting would lead to a decrease in GDP. 
D)  U.S. well-being improves the more reconstruction efforts are needed, following the decline in GDP. 
A)  Spending toward reconstruction would lead to an increase in GDP. 
B)  Increased government spending on relief efforts in the United States would decrease GDP. 
C)  Damaged buildings and looting would lead to a decrease in GDP. 
D)  U.S. well-being improves the more reconstruction efforts are needed, following the decline in GDP.

Question 3

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 4

In The General Theory of Employment, Interest, and Money, Keynes

Accepted Answer

A)  recommended international trade to increase economic stability after recessions. 
B)  encouraged government actions to shorten the recovery time of recessions.. 
C)  supported free markets. 
D)  observed budget surpluses were necessary fixes following budget deficits. 
A)  recommended international trade to increase economic stability after recessions. 
B)  encouraged government actions to shorten the recovery time of recessions.. 
C)  supported free markets. 
D)  observed budget surpluses were necessary fixes following budget deficits.

Question 5

What is gross domestic product? What is included in this statistic? What is excluded? Give two examples of goods or services that are included in GDP and two examples of goods or services that are excluded.

Accepted Answer

Gross domestic product (GDP) is an aggre

Question 6

An example of an intermediate good would be a(n)

Accepted Answer

A)  paper used in this edition of the textbook. 
B)  the appliance you use to heat up your lunch.. 
C)  the used car you purchase. 
D)  the suit you purchased on Black Friday and wore for New Year's Eve. 
A)  paper used in this edition of the textbook. 
B)  the appliance you use to heat up your lunch.. 
C)  the used car you purchase. 
D)  the suit you purchased on Black Friday and wore for New Year's Eve.

Question 7

The existence of the "underground economy" causes measured GDP to overestimate actual output.

Accepted Answer

A) True 
 B)False

Question 8

Macroeconomics is best described as a study of ____ and microeconomics as a study of ____.

Accepted Answer

A)  financial markets, specific markets 
B)  nations, individuals 
C)  the stars, solar system 
D)  abstract, concrete 
A)  financial markets, specific markets 
B)  nations, individuals 
C)  the stars, solar system 
D)  abstract, concrete

Question 9

In response to the "Great Depression 2.0," the Obama administration responded with more tax cuts, increased federal spending, and aid to state and local governments.

Accepted Answer

A) True 
 B)False

Question 10

"Underground" economic activity can best be described as

Accepted Answer

A)  the construction of subway transportation. 
B)  the building of foundation structures for skyscrapers. 
C)  the mining and oil industries. 
D)  barter or cash activity that is not reported as income. 
A)  the construction of subway transportation. 
B)  the building of foundation structures for skyscrapers. 
C)  the mining and oil industries. 
D)  barter or cash activity that is not reported as income.

Question 11

GDP in 2015 would not include the resale of a house built in 2000.

Accepted Answer

A) True 
 B)False

Question 12

Macroeconomics does not study this aggregate

Accepted Answer

A)  GDP. 
B)  inflation. 
C)  happiness. 
D)  unemployment. 
A)  GDP. 
B)  inflation. 
C)  happiness. 
D)  unemployment.

Question 13

Stabilization policy used during the Great Recession could be abstracted by a

Accepted Answer

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

Question 14

The worst post-World War II recession in the United States occurred in

Accepted Answer

A)  1964 
B)  1973 
C)  1981 
D)  2007 
A)  1964 
B)  1973 
C)  1981 
D)  2007

Question 15

The period from 1983 to 1990 was characterized by

Accepted Answer

A)  decreasing budget deficits and increasing trade surpluses. 
B)  persistently high inflation. 
C)  below average rates of real GDP growth. 
D)  consistent growth of real GDP and decreasing rates of inflation. 
A)  decreasing budget deficits and increasing trade surpluses. 
B)  persistently high inflation. 
C)  below average rates of real GDP growth. 
D)  consistent growth of real GDP and decreasing rates of inflation.

Question 16

A good produced in 2009 and held in inventory until it is sold in 2010 would be included in which measure of GDP?

Accepted Answer

A)  Half the value in 2009 and half the value in 2010 
B)  In 2010 GDP 
C)  In both 2009 and 2010 GDP 
D)  In 2009 GDP 
A)  Half the value in 2009 and half the value in 2010 
B)  In 2010 GDP 
C)  In both 2009 and 2010 GDP 
D)  In 2009 GDP

Question 17

During a recession, markets will

Accepted Answer

A)  decline. 
B)  increase. 
C)  increase then decrease. 
D)  move in many different directions. 
A)  decline. 
B)  increase. 
C)  increase then decrease. 
D)  move in many different directions.

Question 18

Toyota (a Japanese-based company) produces Tundras in the state of Texas. In which country's GDP is it included?

Accepted Answer

A)  Japan and the United States 
B)  Japan because Toyota is a Japanese company 
C)  The United States because that is where it was produced 
D)  Neither country because it is sold internationally 
A)  Japan and the United States 
B)  Japan because Toyota is a Japanese company 
C)  The United States because that is where it was produced 
D)  Neither country because it is sold internationally

Question 19

The U.S. GDP includes

Accepted Answer

A)  wine harvested and bottled in California. 
B)  increases in the divorce rate. 
C)  time spent studying for an exam. 
D)  the exchange of four shirts for four skirts at a consignment store. 
A)  wine harvested and bottled in California. 
B)  increases in the divorce rate. 
C)  time spent studying for an exam. 
D)  the exchange of four shirts for four skirts at a consignment store.

Question 20

Trish grows oregano in her backyard to use in her homemade pesto sauce. How is this gardening included in GDP?

Accepted Answer

A)  It is included in real GDP. 
B)  It is included in nominal GDP. 
C)  It is not included in GDP. 
D)  It is included as an intermediate good. 
A)  It is included in real GDP. 
B)  It is included in nominal GDP. 
C)  It is not included in GDP. 
D)  It is included as an intermediate good.

Exam 21: An Introduction to Macroeconomics

In contrast to the typical Republican Party laissez-faire policies, President Richard Nixon in 1971 introduced

Consider the economic impact of Hurricane Florence in 2018. Which of the following statements is correct?

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

In The General Theory of Employment, Interest, and Money, Keynes

What is gross domestic product? What is included in this statistic? What is excluded? Give two examples of goods or services that are included in GDP and two examples of goods or services that are excluded.

An example of an intermediate good would be a(n)

The existence of the "underground economy" causes measured GDP to overestimate actual output.

Macroeconomics is best described as a study of ____ and microeconomics as a study of ____.

In response to the "Great Depression 2.0," the Obama administration responded with more tax cuts, increased federal spending, and aid to state and local governments.

"Underground" economic activity can best be described as

GDP in 2015 would not include the resale of a house built in 2000.

Macroeconomics does not study this aggregate

Stabilization policy used during the Great Recession could be abstracted by a

The worst post-World War II recession in the United States occurred in

The period from 1983 to 1990 was characterized by

A good produced in 2009 and held in inventory until it is sold in 2010 would be included in which measure of GDP?

During a recession, markets will

Toyota (a Japanese-based company) produces Tundras in the state of Texas. In which country's GDP is it included?

The U.S. GDP includes

Trish grows oregano in her backyard to use in her homemade pesto sauce. How is this gardening included in GDP?

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

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 Us Economy

Filters

Macroeconomics is best described as a study of and microeconomics as a study of .