Exam 5: Foundations of the Macroeconomy

Fiscal policy and monetary policy are:

In general, for the United States since 1980:

Fiscal policy and monetary policy influence the level of spending in the economy by:

The phase of the business cycle where real GDP, or output, reaches its maximum is the:

An economy will expand when spending from:

A decrease in real GDP should lead to:

In macroeconomics, "income-determined spending"is:

If the multiplier increases, injections into the spending stream should be:

The ______ _______ refers to a change in nonincome-determined spending that causes an even larger change in total output and income.

A notable difference between household personal consumption expenditures and business investment spending is that personal consumption expenditures:

The least stable component of total spending is:

Household spending:

You would expect the increase in economic activity caused by a $10 billion increase in government purchases of goods and services to be:

Over time, total household spending shows more stability than investment spending by businesses.

Injections include:

The phase of the business cycle where real GDP, or output, is contracting is the:

What role do profit expectations and interest rates play in determining the level of business investment spending?

If the only spending in the economy were household spending based on earned income, and if households always spent all of their incomes, from one year to the next the level of economic activity would:

The phase of the business cycle where real output (GDP) is falling is called the recession.

The least stable type of spending in the economy is: