Question 1

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 2

Which of the following transactions would be included in GDP for 2015?

Accepted Answer

A)  On January 5, 2015, Chris Carter sold 100 shares of stock in IBM Corporation. 
B)  Bonita Delgado purchases a new 2015 Chevrolet on March 10, 2015. 
C)  Nadav Daniel buys a used desk from the "Struggling Students Used Furniture" store on May 9, 2015. 
D)  Levi Lathan purchases a 75-year-old penthouse on Lake Shore Drive in Chicago, Illinois, on June 23, 2015. 
A)  On January 5, 2015, Chris Carter sold 100 shares of stock in IBM Corporation. 
B)  Bonita Delgado purchases a new 2015 Chevrolet on March 10, 2015. 
C)  Nadav Daniel buys a used desk from the "Struggling Students Used Furniture" store on May 9, 2015. 
D)  Levi Lathan purchases a 75-year-old penthouse on Lake Shore Drive in Chicago, Illinois, on June 23, 2015.

Question 3

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

Accepted Answer

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

Question 4

Macroeconomics stresses

Accepted Answer

A)  resource allocation and income distribution. 
B)  inflation and unemployment. 
C)  resource allocation and inflation. 
D)  unemployment and income distribution. 
A)  resource allocation and income distribution. 
B)  inflation and unemployment. 
C)  resource allocation and inflation. 
D)  unemployment and income distribution.

Question 5

An increase in aggregate demand is most likely to result in

Accepted Answer

A)  inflation. 
B)  recession. 
C)  economic stagnation. 
D)  a decrease in real GDP. 
A)  inflation. 
B)  recession. 
C)  economic stagnation. 
D)  a decrease in real GDP.

Question 6

The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference

Accepted Answer

A)  in part because of the use of stabilization policy. 
B)  because of increases in U.S. population due to the "baby boom." 
C)  in part because of the globalization of the economy. 
D)  in part because of the use of competition policy. 
A)  in part because of the use of stabilization policy. 
B)  because of increases in U.S. population due to the "baby boom." 
C)  in part because of the globalization of the economy. 
D)  in part because of the use of competition policy.

Question 7

In the past 100 years, the U.S. economy has primarily experienced

Accepted Answer

A)  deflation. 
B)  unemployment. 
C)  inflation. 
D)  depression. 
A)  deflation. 
B)  unemployment. 
C)  inflation. 
D)  depression.

Question 8

The Great Depression lead many to question the economy's ability to self-correct.

Accepted Answer

A) True 
 B)False

Question 9

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 10

The tax cut of 2001 turned out to be well-timed because it caused a

Accepted Answer

A)  rightward shift of the aggregate demand curve. 
B)  rightward shift of the aggregate supply curve. 
C)  leftward shift of the aggregate demand curve. 
D)  leftward shift of the aggregate supply curve. 
A)  rightward shift of the aggregate demand curve. 
B)  rightward shift of the aggregate supply curve. 
C)  leftward shift of the aggregate demand curve. 
D)  leftward shift of the aggregate supply curve.

Question 11

Gross domestic product represents the money value of all final goods and services produced in the domestic economy within the year.

Accepted Answer

A) True 
 B)False

Question 12

During the summer months, many families go hiking, camping, and fishing at national parks. This is an example of

Accepted Answer

A)  aggregate demand for the outdoors. 
B)  the incentive to work hard, play hard. 
C)  underground economic activity. 
D)  the implicit value of leisure time. 
A)  aggregate demand for the outdoors. 
B)  the incentive to work hard, play hard. 
C)  underground economic activity. 
D)  the implicit value of leisure time.

Question 13

Nominal GDP includes the current value of services produced in the economy.

Accepted Answer

A) True 
 B)False

Question 14

Nominal GDP is another term for

Accepted Answer

A)  current dollar GDP. 
B)  constant dollar GDP. 
C)  adjusted dollar GDP. 
D)  relative value GDP. 
A)  current dollar GDP. 
B)  constant dollar GDP. 
C)  adjusted dollar GDP. 
D)  relative value GDP.

Question 15

GDP stagnated during the Obama presidency.

Accepted Answer

A) True 
 B)False

Question 16

China is the world's largest wheat producer. If China's real gross domestic product grew by 11 percent in the previous year, it implies that

Accepted Answer

A)  production of wheat grew by more than 11 percent. 
B)  products other than wheat grew by less than 11 percent. 
C)  China's overall output grew by 11 percent. 
D)  production of wheat is declining in China. 
A)  production of wheat grew by more than 11 percent. 
B)  products other than wheat grew by less than 11 percent. 
C)  China's overall output grew by 11 percent. 
D)  production of wheat is declining in China.

Question 17

If hotdogs cost $2 this year and $3 next year, then 100 hotdogs will contribute

Accepted Answer

A)  $200 to this year's nominal GDP and $166 to next year's nominal GDP. 
B)  $200 to this year's real GDP and $300 to next year's real GDP. 
C)  the same dollar amount to each year's nominal GDP because hotdogs are intermediate goods. 
D)  $200 to this year's nominal GDP and $300 to next year's nominal GDP. 
A)  $200 to this year's nominal GDP and $166 to next year's nominal GDP. 
B)  $200 to this year's real GDP and $300 to next year's real GDP. 
C)  the same dollar amount to each year's nominal GDP because hotdogs are intermediate goods. 
D)  $200 to this year's nominal GDP and $300 to next year's nominal GDP.

Question 18

During the first year of the Obama administration in 2009, the American economy experienced

Accepted Answer

A)  low unemployment. 
B)  stagnation. 
C)  slow rate of growth. 
D)  deflation. 
A)  low unemployment. 
B)  stagnation. 
C)  slow rate of growth. 
D)  deflation.

Question 19

Intermediate goods, like milk sold by a farmer to a supermarket, are

Accepted Answer

A)  included in GDP. 
B)  included in GDP at market value. 
C)  included if it is imported. 
D)  are not included in GDP. 
A)  included in GDP. 
B)  included in GDP at market value. 
C)  included if it is imported. 
D)  are not included in GDP.

Question 20

The clearest sign of inflation would be a(n)

Accepted Answer

A)  increase in the price level. 
B)  increase in the quantity of total final output. 
C)  decrease in the quantity of total final output. 
D)  simultaneous increase in both output and prices. 
A)  increase in the price level. 
B)  increase in the quantity of total final output. 
C)  decrease in the quantity of total final output. 
D)  simultaneous increase in both output and prices.

Exam 21: An Introduction to Macroeconomics

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

Which of the following transactions would be included in GDP for 2015?

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

Macroeconomics stresses

An increase in aggregate demand is most likely to result in

The economy in the period 1950 to 1998 behaved differently than the economy in the 1870 to 1940 time period. Economists explain this difference

In the past 100 years, the U.S. economy has primarily experienced

The Great Depression lead many to question the economy's ability to self-correct.

Combating recession may require the government to

The tax cut of 2001 turned out to be well-timed because it caused a

Gross domestic product represents the money value of all final goods and services produced in the domestic economy within the year.

During the summer months, many families go hiking, camping, and fishing at national parks. This is an example of

Nominal GDP includes the current value of services produced in the economy.

Nominal GDP is another term for

GDP stagnated during the Obama presidency.

China is the world's largest wheat producer. If China's real gross domestic product grew by 11 percent in the previous year, it implies that

If hotdogs cost $2 this year and $3 next year, then 100 hotdogs will contribute

During the first year of the Obama administration in 2009, the American economy experienced

Intermediate goods, like milk sold by a farmer to a supermarket, are

The clearest sign of inflation would be a(n)

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

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