Question 1

Which of the following is a period of decreasing output that is severe and long lasting?

Accepted Answer

A)  business cycle 
B)  expansion 
C)  peak 
D)  recession 
E)  depression 
A)  business cycle 
B)  expansion 
C)  peak 
D)  recession 
E)  depression

Question 2

Macroeconomics studies the behavior of individual decision makers while microeconomics studies the overall economy.

Accepted Answer

A) True 
 B)False

Question 3

The difference between microeconomics and macroeconomics is that

Accepted Answer

A)  microeconomics deals with only small numbers while macroeconomics is always dealing with numbers in the billions and trillions 
B)  microeconomics deals with the economy as a whole while macroeconomics deals with individual firms 
C)  microeconomics is concerned with the behavior of individual decision-makers while macroeconomics is concerned with behavior of entire economies 
D)  microeconomics is only useful for small countries while macroeconomics is useful for large countries 
E)  microeconomics is only useful for large economies like the United States while macroeconomics is only useful for small economies 
A)  microeconomics deals with only small numbers while macroeconomics is always dealing with numbers in the billions and trillions 
B)  microeconomics deals with the economy as a whole while macroeconomics deals with individual firms 
C)  microeconomics is concerned with the behavior of individual decision-makers while macroeconomics is concerned with behavior of entire economies 
D)  microeconomics is only useful for small countries while macroeconomics is useful for large countries 
E)  microeconomics is only useful for large economies like the United States while macroeconomics is only useful for small economies

Question 4

Which of the following is a normative macroeconomic statement?

Accepted Answer

A)  An increase in government spending will reduce unemployment. 
B)  An active government policy should be employed to maintain a healthy economy. 
C)  The unemployment rate is 10 percent. 
D)  There is a positive relationship between inflation and the rate of growth of money 
E)  Gross domestic product grew 3 percent this year. 
A)  An increase in government spending will reduce unemployment. 
B)  An active government policy should be employed to maintain a healthy economy. 
C)  The unemployment rate is 10 percent. 
D)  There is a positive relationship between inflation and the rate of growth of money 
E)  Gross domestic product grew 3 percent this year.

Question 5

A measure that economists use in order to keep track of employment is

Accepted Answer

A)  the price level 
B)  real GDP per person 
C)  real GDP 
D)  the growth rate of output 
E)  the unemployment rate 
A)  the price level 
B)  real GDP per person 
C)  real GDP 
D)  the growth rate of output 
E)  the unemployment rate

Question 6

At the peak of a business cycle,employment and GDP are

Accepted Answer

A)  at their lowest 
B)  at their highest 
C)  rising 
D)  falling 
E)  it is impossible to state for certain what is happening to employment and GDP 
A)  at their lowest 
B)  at their highest 
C)  rising 
D)  falling 
E)  it is impossible to state for certain what is happening to employment and GDP

Which of the following is a period of decreasing output that is severe and long lasting?

Macroeconomics studies the behavior of individual decision makers while microeconomics studies the overall economy.

The difference between microeconomics and macroeconomics is that

Which of the following is a normative macroeconomic statement?

A measure that economists use in order to keep track of employment is

At the peak of a business cycle,employment and GDP are

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 5: What Macroeconomics Tries to Explain

Which of the following is a period of decreasing output that is severe and long lasting?

Macroeconomics studies the behavior of individual decision makers while microeconomics studies the overall economy.

The difference between microeconomics and macroeconomics is that

Which of the following is a normative macroeconomic statement?

A measure that economists use in order to keep track of employment is

At the peak of a business cycle,employment and GDP are

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters