Question 1

It might be useful to think of macroeconomics as a study of ____ and microeconomics as a study of ____.

Accepted Answer

A)  big corporations, small businesses 
B)  oceans, fish 
C)  the long run, the short run 
D)  abstract, concrete 
E)  theory, reality 
A)  big corporations, small businesses 
B)  oceans, fish 
C)  the long run, the short run 
D)  abstract, concrete 
E)  theory, reality

Question 2

Compare and contrast the U.S.economic record prior to 1940 and after 1950.How do the two time periods differ? What best explains the differences according to a macroeconomist?

Accepted Answer

The economy experienced business cycles

Question 3

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 4

In her book on the American work week,economist Juliet Schorr argues that Americans work too much.Her argument may be interpreted as concluding that this behavior

Accepted Answer

A)  increases GDP but decreases well being. 
B)  increases GDP and increases well-being. 
C)  decreases GDP and decreases well being. 
D)  decreases GDP but increases well being. 
A)  increases GDP but decreases well being. 
B)  increases GDP and increases well-being. 
C)  decreases GDP and decreases well being. 
D)  decreases GDP but increases well being.

Question 5

In response to the "Great Depression" 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 6

The definition of Gross Domestic Product is

Accepted Answer

A)  the total value of all sales in the economy. 
B)  the total value of production in the domestic economy plus the production of domestic firms in foreign countries. 
C)  the total value of all sales of final and intermediate goods in the domestic economy. 
D)  the total of the money values of all final goods and services produced in the domestic economy within a specific time period. 
A)  the total value of all sales in the economy. 
B)  the total value of production in the domestic economy plus the production of domestic firms in foreign countries. 
C)  the total value of all sales of final and intermediate goods in the domestic economy. 
D)  the total of the money values of all final goods and services produced in the domestic economy within a specific time period.

Question 7

Stagflation can be defined as a combination of ____.

Accepted Answer

A)  economic migration and inflation 
B)  economic aggregation and deflation 
C)  economic stagnation and inflation 
D)  economic aggregation and inflation 
A)  economic migration and inflation 
B)  economic aggregation and deflation 
C)  economic stagnation and inflation 
D)  economic aggregation and inflation

Question 8

Stabilization policy often faces a trade-off between inflation and unemployment.

Accepted Answer

A) True 
 B)False

Question 9

Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models.

Accepted Answer

A) True 
 B)False

Question 10

If aggregate demand keeps shifting rightward month after month and aggregate supply remains constant,the economy will experience a recession.

Accepted Answer

A) True 
 B)False

Question 11

An increase in aggregate demand will result in inflation.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following would be counted in the U.S.GDP for 2011?

Accepted Answer

A)  a Ford Fiesta made in Mexico 
B)  the $5,000 an investor used to purchase stock in Home Depot 
C)  Ford buying tires from Goodyear for new Ford Mustangs 
D)  none of the above 
A)  a Ford Fiesta made in Mexico 
B)  the $5,000 an investor used to purchase stock in Home Depot 
C)  Ford buying tires from Goodyear for new Ford Mustangs 
D)  none of the above

Question 13

Define and distinguish between real and nominal GDP.Explain why the distinction is important to economists.

Accepted Answer

Real GDP (or GDP in constant dollars)is

Question 14

During the first year of the Bush administration in 2001,the American economy

Accepted Answer

A)  increased its already rapid growth rate. 
B)  experienced high levels of inflation. 
C)  slowed in its rate of economic growth. 
D)  experienced a decrease in the rate of unemployment. 
A)  increased its already rapid growth rate. 
B)  experienced high levels of inflation. 
C)  slowed in its rate of economic growth. 
D)  experienced a decrease in the rate of unemployment.

Question 15

Define the following terms and explain their importance to the study of macroeconomics:
a.aggregation
b.recession
c.gross domestic product
d.final goods and services
e.
stabilization policy

Accepted Answer

a.Aggregation means combining many indiv

Question 16

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 17

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

The Great Depression of the 1930s

Accepted Answer

A)  confirmed the value of a "hands off" policy for governments. 
B)  was exacerbated by an expansionary monetary policy. 
C)  was a worldwide event. 
D)  continued throughout the 1940s without any interruption. 
A)  confirmed the value of a "hands off" policy for governments. 
B)  was exacerbated by an expansionary monetary policy. 
C)  was a worldwide event. 
D)  continued throughout the 1940s without any interruption.

Question 20

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right,the result will be a

Accepted Answer

A)  decrease in the level of output. 
B)  decrease in the price level. 
C)  higher price level. 
D)  higher unemployment rate. 
A)  decrease in the level of output. 
B)  decrease in the price level. 
C)  higher price level. 
D)  higher unemployment rate.

It might be useful to think of macroeconomics as a study of and microeconomics as a study of .

Compare and contrast the U.S.economic record prior to 1940 and after 1950.How do the two time periods differ? What best explains the differences according to a macroeconomist?

Combating recession may require the government to

In her book on the American work week,economist Juliet Schorr argues that Americans work too much.Her argument may be interpreted as concluding that this behavior

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

The definition of Gross Domestic Product is

Stagflation can be defined as a combination of ____.

Stabilization policy often faces a trade-off between inflation and unemployment.

Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models.

If aggregate demand keeps shifting rightward month after month and aggregate supply remains constant,the economy will experience a recession.

An increase in aggregate demand will result in inflation.

Which of the following would be counted in the U.S.GDP for 2011?

Define and distinguish between real and nominal GDP.Explain why the distinction is important to economists.

During the first year of the Bush administration in 2001,the American economy

Define the following terms and explain their importance to the study of macroeconomics: a.aggregation b.recession c.gross domestic product d.final goods and services e. stabilization policy

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

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

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

The Great Depression of the 1930s

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right,the result will be a

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

Filters

Exam 5: An Introduction to Macroeconomics

It might be useful to think of macroeconomics as a study of ____ and microeconomics as a study of ____.

Compare and contrast the U.S.economic record prior to 1940 and after 1950.How do the two time periods differ? What best explains the differences according to a macroeconomist?

Combating recession may require the government to

In her book on the American work week,economist Juliet Schorr argues that Americans work too much.Her argument may be interpreted as concluding that this behavior

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

The definition of Gross Domestic Product is

Stagflation can be defined as a combination of ____.

Stabilization policy often faces a trade-off between inflation and unemployment.

Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models.

If aggregate demand keeps shifting rightward month after month and aggregate supply remains constant,the economy will experience a recession.

An increase in aggregate demand will result in inflation.

Which of the following would be counted in the U.S.GDP for 2011?

Define and distinguish between real and nominal GDP.Explain why the distinction is important to economists.

During the first year of the Bush administration in 2001,the American economy

Define the following terms and explain their importance to the study of macroeconomics: a.aggregation b.recession c.gross domestic product d.final goods and services e. stabilization policy

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

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

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

The Great Depression of the 1930s

If the aggregate demand curve shifts to the left and the aggregate supply curve shifts to the right,the result will be a

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

Filters

It might be useful to think of macroeconomics as a study of and microeconomics as a study of .