Question 1

Which of these describes the real gross domestic product?

Accepted Answer

A)  gross domestic product from which depreciation costs have been deducted 
B)  gross domestic product that has been adjusted for changes in the price level 
C)  gross domestic product from which taxes have been deducted 
D)  gross domestic product that has been adjusted for changes in the exchange rate 
E)  gross domestic product that has been adjusted for changes in interest rates 
A)  gross domestic product from which depreciation costs have been deducted 
B)  gross domestic product that has been adjusted for changes in the price level 
C)  gross domestic product from which taxes have been deducted 
D)  gross domestic product that has been adjusted for changes in the exchange rate 
E)  gross domestic product that has been adjusted for changes in interest rates

Question 2

If the real GDP of a country in 2016 was $500 billion and its population was 100 billion, then real GDP per capita for that year was _____

Accepted Answer

A)  $0.5 billion. 
B)  $1 billion. 
C)  $10 billion. 
D)  $5 billion. 
E)  $2.5 billion. 
A)  $0.5 billion. 
B)  $1 billion. 
C)  $10 billion. 
D)  $5 billion. 
E)  $2.5 billion.

Question 3

A key idea behind _____ was that the federal government, by lowering tax rates, would increase after-tax wages, which would provide incentives to increase the supply of labor and other resources.

Accepted Answer

A)  demand-side economics 
B)  supply-side economics 
C)  the invisible hand 
D)  laissez-faire philosophy 
E)  Keynesian economics 
A)  demand-side economics 
B)  supply-side economics 
C)  the invisible hand 
D)  laissez-faire philosophy 
E)  Keynesian economics

Question 4

For a given aggregate supply curve, the price level and output will both increase when aggregate demand decreases.

Accepted Answer

A) True 
 B)False

Question 5

According to Keynes, the adoption of an expansionary fiscal policy will cause _____

Accepted Answer

A)  both equilibrium price level and equilibrium output to rise. 
B)  equilibrium price level to rise and equilibrium output to fall. 
C)  equilibrium price level to fall and equilibrium output to rise. 
D)  both equilibrium price level and equilibrium output to fall. 
E)  equilibrium price level to remain the same and equilibrium output to fall. 
A)  both equilibrium price level and equilibrium output to rise. 
B)  equilibrium price level to rise and equilibrium output to fall. 
C)  equilibrium price level to fall and equilibrium output to rise. 
D)  both equilibrium price level and equilibrium output to fall. 
E)  equilibrium price level to remain the same and equilibrium output to fall.

Question 6

The phrase "fine-tuning the economy" implies _____

Accepted Answer

A)  making government economic policy more "people-oriented." 
B)  using government policies to adjust the economy and promote economic stability. 
C)  solving microeconomic problems such as externalities and losing sight of the big picture. 
D)  placing fewer regulations on the private sector, thereby eliminating the need for government intervention. 
E)  designing policies based exclusively on leading economic indicators. 
A)  making government economic policy more "people-oriented." 
B)  using government policies to adjust the economy and promote economic stability. 
C)  solving microeconomic problems such as externalities and losing sight of the big picture. 
D)  placing fewer regulations on the private sector, thereby eliminating the need for government intervention. 
E)  designing policies based exclusively on leading economic indicators.

Question 7

If the government of a country owes $3,500 billion to the International Monetary Fund and then borrows an additional $300 billion this year, it implies that the _____

Accepted Answer

A)  national debt is $300 billion and the fiscal deficit is $3.8 trillion. 
B)  national debt is $3,800 billion and the fiscal deficit is $300 billion. 
C)  national debt is $4,100 billion. 
D)  fiscal deficit is $3,800 billion. 
E)  national debt and fiscal deficit both equal $3.8 trillion. 
A)  national debt is $300 billion and the fiscal deficit is $3.8 trillion. 
B)  national debt is $3,800 billion and the fiscal deficit is $300 billion. 
C)  national debt is $4,100 billion. 
D)  fiscal deficit is $3,800 billion. 
E)  national debt and fiscal deficit both equal $3.8 trillion.

Question 8

_____ are variables that follow, or trail, changes in overall economic activity.

Accepted Answer

A)  Coincident economic indicators 
B)  Lagging economic indicators 
C)  Leading economic indicators 
D)  Perfect economic indicators 
E)  Real economic indicators 
A)  Coincident economic indicators 
B)  Lagging economic indicators 
C)  Leading economic indicators 
D)  Perfect economic indicators 
E)  Real economic indicators

Question 9

Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.

Accepted Answer

A) True 
 B)False

Question 10

_____ 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 11

Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices. Which of the following is the most likely result?

Accepted Answer

A)  a growth in real GDP 
B)  price stability 
C)  full employment output 
D)  stagflation 
E)  deflation 
A)  a growth in real GDP 
B)  price stability 
C)  full employment output 
D)  stagflation 
E)  deflation

Question 12

The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied.

Accepted Answer

A) True 
 B)False

Question 13

What occurred between 1873 and 1879?

Accepted Answer

A)  A U.S. economic expansion became the longest on record. 
B)  Federal spending increased for both the war and social programs at home. 
C)  The outbreak of war boosted employment to fight for the country and to make tanks, ships, aircraft, and the like. 
D)  80 railroads went bankrupt and most of the nation's steel mills shut down. 
E)  Home prices declined and foreclosures rose, as more borrowers failed to make their mortgage payments. 
A)  A U.S. economic expansion became the longest on record. 
B)  Federal spending increased for both the war and social programs at home. 
C)  The outbreak of war boosted employment to fight for the country and to make tanks, ships, aircraft, and the like. 
D)  80 railroads went bankrupt and most of the nation's steel mills shut down. 
E)  Home prices declined and foreclosures rose, as more borrowers failed to make their mortgage payments.

Question 14

The period between two successive peaks in a business cycle is called a contraction.

Accepted Answer

A) True 
 B)False

Question 15

The Reagan administration's policies were aimed at managing aggregate demand.

Accepted Answer

A) True 
 B)False

Question 16

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following 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 amounts 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 amounts of U.S. goods 
D)  households demanding more housing and furniture 
E)  firms demanding more capital resources

Question 18

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 19

The Keynesian approach to fiscal policy calls for _____

Accepted Answer

A)  budget deficits during periods of inflationary pressure. 
B)  budget surpluses during periods of high unemployment. 
C)  a balanced budget despite the state of the economy. 
D)  tax cuts during recession. 
E)  spending increases during inflation. 
A)  budget deficits during periods of inflationary pressure. 
B)  budget surpluses during periods of high unemployment. 
C)  a balanced budget despite the state of the economy. 
D)  tax cuts during recession. 
E)  spending increases during inflation.

Question 20

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 bonds 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 bonds held by an individual. 
E)  the total fiscal spending during a particular quarter.

Which of these describes the real gross domestic product?

If the real GDP of a country in 2016 was $500 billion and its population was 100 billion, then real GDP per capita for that year was _____

A key idea behind _____ was that the federal government, by lowering tax rates, would increase after-tax wages, which would provide incentives to increase the supply of labor and other resources.

For a given aggregate supply curve, the price level and output will both increase when aggregate demand decreases.

According to Keynes, the adoption of an expansionary fiscal policy will cause _____

The phrase "fine-tuning the economy" implies _____

If the government of a country owes $3,500 billion to the International Monetary Fund and then borrows an additional $300 billion this year, it implies that the _____

_____ are variables that follow, or trail, changes in overall economic activity.

Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.

_____ varies along a given aggregate demand curve.

Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices. Which of the following is the most likely result?

The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied.

What occurred between 1873 and 1879?

The period between two successive peaks in a business cycle is called a contraction.

The Reagan administration's policies were aimed at managing aggregate demand.

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

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

A rise in the price level will _____

The Keynesian approach to fiscal policy calls for _____

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

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Tracking the U. S. Economy.

Unemployment and Inflation.

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.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 5: Introduction to Macroeconomics.

Which of these describes the real gross domestic product?

If the real GDP of a country in 2016 was $500 billion and its population was 100 billion, then real GDP per capita for that year was _____

A key idea behind _____ was that the federal government, by lowering tax rates, would increase after-tax wages, which would provide incentives to increase the supply of labor and other resources.

For a given aggregate supply curve, the price level and output will both increase when aggregate demand decreases.

According to Keynes, the adoption of an expansionary fiscal policy will cause _____

The phrase "fine-tuning the economy" implies _____

If the government of a country owes $3,500 billion to the International Monetary Fund and then borrows an additional $300 billion this year, it implies that the _____

_____ are variables that follow, or trail, changes in overall economic activity.

Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.

_____ varies along a given aggregate demand curve.

Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices. Which of the following is the most likely result?

The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied.

What occurred between 1873 and 1879?

The period between two successive peaks in a business cycle is called a contraction.

The Reagan administration's policies were aimed at managing aggregate demand.

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

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

A rise in the price level will _____

The Keynesian approach to fiscal policy calls for _____

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

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Tracking the U. S. Economy.

Unemployment and Inflation.

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.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters