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?

Discuss some of the fundamental differences between microeconomics and macroeconomics.

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

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

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

The Great Depression ended in the United States when

Real GDP values current output of goods and services at their current prices.

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

GDP cannot be used for international comparisons because

You won the lottery in 2006 for $22 million and gave your sister $500,000. Your winning contributed how much to GDP?

Donald Trump's first years in office could be illustrated by an

Stabilization policy has helped ameliorate the impact of recessions since the 1950s.

Figure 5-2 In Figure 5-2, an increase in government spending would cause

The vertical axis of the aggregate demand-aggregate supply model measures the amount of

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

In the years after the Great Recession, the inflation rate has been

Which of the following is included in GDP?

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

During economic fluctuations, individual markets usually move in different directions.