Question 1

Which of these is a likely consequence of an increase in the price level in the economy, other things constant?

Accepted Answer

A)  Firms demanding less imported raw materials 
B)  Government demanding less military hardware 
C)  Foreigners demanding greater amount of U.S. goods 
D)  Households demanding more housing and furniture 
E)  Firms demanding more capital resources 
A)  Firms demanding less imported raw materials 
B)  Government demanding less military hardware 
C)  Foreigners demanding greater amount of U.S. goods 
D)  Households demanding more housing and furniture 
E)  Firms demanding more capital resources B

Question 2

The market value of all final goods and services produced in a nation during a particular period is called the:

Accepted Answer

A)  gross domestic product. 
B)  net national product. 
C)  national income. 
D)  gross national product. 
E)  gross world product. 
A)  gross domestic product. 
B)  net national product. 
C)  national income. 
D)  gross national product. 
E)  gross world product. A

Question 3

An example of a stock variable in economic theory will be:

Accepted Answer

A)  the amount of money saved by an individual each week. 
B)  the amount of money spent on buying gasoline each month. 
C)  the weekly grocery bill of an average household. 
D)  the total value of the government bond held by an individual. 
E)  the total fiscal spending during a particular quarter. 
A)  the amount of money saved by an individual each week. 
B)  the amount of money spent on buying gasoline each month. 
C)  the weekly grocery bill of an average household. 
D)  the total value of the government bond held by an individual. 
E)  the total fiscal spending during a particular quarter. D

Question 4

If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the economy will experience _____.

Accepted Answer

A)  fewer; recession 
B)  fewer; growth 
C)  more; deflation 
D)  more; recession 
E)  more; growth 
A)  fewer; recession 
B)  fewer; growth 
C)  more; deflation 
D)  more; recession 
E)  more; growth

Question 5

_____ varies along a given aggregate demand curve.

Accepted Answer

A)  The nominal interest rate in the domestic country 
B)  The exchange rate between the domestic currency and a foreign currency 
C)  The aggregate supply in a foreign country 
D)  The price level in the domestic country 
E)  The prices of resources used in production 
A)  The nominal interest rate in the domestic country 
B)  The exchange rate between the domestic currency and a foreign currency 
C)  The aggregate supply in a foreign country 
D)  The price level in the domestic country 
E)  The prices of resources used in production

Question 6

The aggregate supply curve of an economy:

Accepted Answer

A)  is a downward-sloping straight line. 
B)  is an upward-sloping curve. 
C)  is a vertical line parallel to the price axis. 
D)  is a horizontal line parallel to the output axis. 
E)  is a ray from the origin. 
A)  is a downward-sloping straight line. 
B)  is an upward-sloping curve. 
C)  is a vertical line parallel to the price axis. 
D)  is a horizontal line parallel to the output axis. 
E)  is a ray from the origin.

Question 7

Which of these is a coincident economic indicator?

Accepted Answer

A)  The demand for plant and machinery 
B)  Personal income 
C)  Real estate growth 
D)  The interest rate 
E)  The unemployment rate 
A)  The demand for plant and machinery 
B)  Personal income 
C)  Real estate growth 
D)  The interest rate 
E)  The unemployment rate

Question 8

Which of the following would indicate the beginning of a recessionary phase in an economy?

Accepted Answer

A)  Many new firms starting up 
B)  Stock prices improving 
C)  Businesses slowing down 
D)  Demand for real estate picking up 
E)  Orders for new equipment increasing 
A)  Many new firms starting up 
B)  Stock prices improving 
C)  Businesses slowing down 
D)  Demand for real estate picking up 
E)  Orders for new equipment increasing

Question 9

Which of the following variables is measured only at a particular point in time and not over different time periods?

Accepted Answer

A)  The unemployment rate 
B)  Consumer income 
C)  The federal government's debt 
D)  The federal government's budget deficit 
E)  Total expenditure 
A)  The unemployment rate 
B)  Consumer income 
C)  The federal government's debt 
D)  The federal government's budget deficit 
E)  Total expenditure

Question 10

Macroeconomics is a branch of economics that studies:

Accepted Answer

A)  the different costs associated with production. 
B)  the price and output decisions made by different industries. 
C)  the overall performance of the economy. 
D)  the role of a market in determining an efficient outcome. 
E)  the role of input suppliers in determining the price and quantity of output. 
A)  the different costs associated with production. 
B)  the price and output decisions made by different industries. 
C)  the overall performance of the economy. 
D)  the role of a market in determining an efficient outcome. 
E)  the role of input suppliers in determining the price and quantity of output.

Question 11

In the 1960s, government policy makers believed that they could:

Accepted Answer

A)  stabilize the economy by letting the market system solve all problems. 
B)  reduce unemployment by running federal budget surpluses. 
C)  eliminate government's role in stabilization policy. 
D)  use changes in the money supply to virtually eliminate business cycles. 
E)  use taxation and government spending to fine-tune the economy. 
A)  stabilize the economy by letting the market system solve all problems. 
B)  reduce unemployment by running federal budget surpluses. 
C)  eliminate government's role in stabilization policy. 
D)  use changes in the money supply to virtually eliminate business cycles. 
E)  use taxation and government spending to fine-tune the economy.

Question 12

An increase in wage rate, other things constant, shifts the aggregate supply curve downward.

Accepted Answer

A) True 
 B)False

Question 13

On a graph showing the aggregate demand and aggregate supply curves, stagflation can be represented by a:

Accepted Answer

A)  leftward shift of the aggregate supply curve. 
B)  rightward shift of the aggregate supply curve. 
C)  upward movement along the aggregate supply curve. 
D)  rightward shift of the aggregate demand curve. 
E)  upward movement along the aggregate demand curve. 
A)  leftward shift of the aggregate supply curve. 
B)  rightward shift of the aggregate supply curve. 
C)  upward movement along the aggregate supply curve. 
D)  rightward shift of the aggregate demand curve. 
E)  upward movement along the aggregate demand curve.

Question 14

A fall in the price level will:

Accepted Answer

A)  cause an upward movement upward along the aggregate demand curve. 
B)  cause a downward movement along the aggregate demand curve. 
C)  cause a leftward shift of the aggregate demand curve. 
D)  cause a rightward shift of the aggregate demand curve. 
E)  have no impact on the aggregate demand curve. 
A)  cause an upward movement upward along the aggregate demand curve. 
B)  cause a downward movement along the aggregate demand curve. 
C)  cause a leftward shift of the aggregate demand curve. 
D)  cause a rightward shift of the aggregate demand curve. 
E)  have no impact on the aggregate demand curve.

Question 15

A rise in the price level will:

Accepted Answer

A)  cause an upward movement along the aggregate demand curve. 
B)  cause a downward movement along the aggregate demand curve. 
C)  cause a leftward shift of the aggregate demand curve. 
D)  cause a rightward shift of the aggregate demand curve. 
E)  have no impact on the aggregate demand curve. 
A)  cause an upward movement along the aggregate demand curve. 
B)  cause a downward movement along the aggregate demand curve. 
C)  cause a leftward shift of the aggregate demand curve. 
D)  cause a rightward shift of the aggregate demand curve. 
E)  have no impact on the aggregate demand curve.

Question 16

Which of these is the most ideal measure of aggregate output?

Accepted Answer

A)  Disposable income 
B)  Nominal GDP 
C)  Personal income 
D)  The real GDP 
E)  Gross national product 
A)  Disposable income 
B)  Nominal GDP 
C)  Personal income 
D)  The real GDP 
E)  Gross national product

Question 17

Which of the following best describes a stock rather than a flow?

Accepted Answer

A)  Each week, you save $100. 
B)  Each week, you buy $10 worth of gasoline. 
C)  Each week, you buy $50 worth of groceries 
D)  You earn $500 per week at your job. 
E)  You own $5,000 worth of government bonds. 
A)  Each week, you save $100. 
B)  Each week, you buy $10 worth of gasoline. 
C)  Each week, you buy $50 worth of groceries 
D)  You earn $500 per week at your job. 
E)  You own $5,000 worth of government bonds.

Question 18

A period of sustained growth in output in an economy is referred to as a(n) _____.

Accepted Answer

A)  expansion 
B)  contraction 
C)  peak 
D)  trough 
E)  recession 
A)  expansion 
B)  contraction 
C)  peak 
D)  trough 
E)  recession

Question 19

Which of these is the best measure of the average standard of living in an economy?

Accepted Answer

A)  The unemployment rate 
B)  Nominal income 
C)  Real GDP 
D)  National debt 
E)  Real GDP per capita 
A)  The unemployment rate 
B)  Nominal income 
C)  Real GDP 
D)  National debt 
E)  Real GDP per capita

Question 20

The Keynesian approach to economic policy is also known as:

Accepted Answer

A)  supply-side economics. 
B)  Classical economics. 
C)  demand-side economics. 
D)  mercantilism. 
E)  laissez-faire. 
A)  supply-side economics. 
B)  Classical economics. 
C)  demand-side economics. 
D)  mercantilism. 
E)  laissez-faire.

Which of these is a likely consequence of an increase in the price level in the economy, other things constant?

The market value of all final goods and services produced in a nation during a particular period is called the:

An example of a stock variable in economic theory will be:

If all firms expect greater demand for their products or services, they will hire _ resources like labor and capital and the economy will experience _.

_____ varies along a given aggregate demand curve.

The aggregate supply curve of an economy:

Which of these is a coincident economic indicator?

Which of the following would indicate the beginning of a recessionary phase in an economy?

Which of the following variables is measured only at a particular point in time and not over different time periods?

Macroeconomics is a branch of economics that studies:

In the 1960s, government policy makers believed that they could:

An increase in wage rate, other things constant, shifts the aggregate supply curve downward.

On a graph showing the aggregate demand and aggregate supply curves, stagflation can be represented by a:

A fall in the price level will:

A rise in the price level will:

Which of these is the most ideal measure of aggregate output?

Which of the following best describes a stock rather than a flow?

A period of sustained growth in output in an economy is referred to as a(n) _____.

Which of these is the best measure of the average standard of living in an economy?

The Keynesian approach to economic policy is also known as:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 5: Introduction to Macroeconomics

Which of these is a likely consequence of an increase in the price level in the economy, other things constant?

The market value of all final goods and services produced in a nation during a particular period is called the:

An example of a stock variable in economic theory will be:

If all firms expect greater demand for their products or services, they will hire _____ resources like labor and capital and the economy will experience _____.

_____ varies along a given aggregate demand curve.

The aggregate supply curve of an economy:

Which of these is a coincident economic indicator?

Which of the following would indicate the beginning of a recessionary phase in an economy?

Which of the following variables is measured only at a particular point in time and not over different time periods?

Macroeconomics is a branch of economics that studies:

In the 1960s, government policy makers believed that they could:

An increase in wage rate, other things constant, shifts the aggregate supply curve downward.

On a graph showing the aggregate demand and aggregate supply curves, stagflation can be represented by a:

A fall in the price level will:

A rise in the price level will:

Which of these is the most ideal measure of aggregate output?

Which of the following best describes a stock rather than a flow?

A period of sustained growth in output in an economy is referred to as a(n) _____.

Which of these is the best measure of the average standard of living in an economy?

The Keynesian approach to economic policy is also known as:

The Art and Science of Economic Analysis

Some Tools of Economic Analysis

Economic Decision Makers

Demand, Supply, and Markets

Tracking the U S Economy

Unemployment and Inflation

Us Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

The Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

If all firms expect greater demand for their products or services, they will hire _ resources like labor and capital and the economy will experience _.