Exam 5: Foundations of the Macroeconomy

-Which of these figures best illustrates the behavior of real GDP in the U.S. economy over the last few decades?

If, holding all else equal, the level of household saving decreased and the level of business investment spending increased, the level of economic activity would:

Since the early 1980s:

The expectation of:

An economy will contract when spending from:

If transfer payments were increasing at the same time monetary policy was used to increase the interest rate:

The primary cause of changes in the level of economic activity is changes in:

Holding everything else constant, which of the following would cause economic activity to decrease?

The basic factor causing changes in the level of economic activity is changes in the level of:

All other things equal, which of the following statements is true?

Considering only the household sector, an economy will:

The economic policy that focuses on changing the size of the spending stream by changing government taxes and/or expenditures is:

The two major categories of government spending are _______ ______.

Which of the following statements about the multiplier effect is FALSE?

Considering only the household sector, if household saving and taxes are less than spending from borrowing and transfers, then injections into the spending stream are:

Which of the following statements is FALSE?

Basically, an increase in nonincome-determined spending is subject to a multiplier effect because:

How does the relationship between leakages from and injections into the spending stream cause the level of economic activity to change?

If 20% of additional income received by households was NOT spent, the economy's total output would grow by:

The four phases of a business cycle, and their correct order, are: