Question 1

Macroeconomics stresses

Accepted Answer

A) resource allocation and income distribution. 
B) inflation and unemployment. 
C) resource allocation and inflation. 
D) unemployment and income distribution. 
A) resource allocation and income distribution. 
B) inflation and unemployment. 
C) resource allocation and inflation. 
D) unemployment and income distribution. B

Question 2

GDP in 2015 would not include the resale of a house built in 2000.

Accepted Answer

A) True 
 B)False  True

Question 3

Cars produced by General Motors in Mexico would be included in U.S.Gross Domestic Product.

Accepted Answer

A) True 
 B)False  False

Question 4

A good produced in 2009 and held in inventory until it is sold in 2010 would be included in which measure of GDP?

Accepted Answer

A) Half the value in 2009 and half the value in 2010 
B) In 2010 GDP 
C) In both 2009 and 2010 GDP 
D) In 2009 GDP 
A) Half the value in 2009 and half the value in 2010 
B) In 2010 GDP 
C) In both 2009 and 2010 GDP 
D) In 2009 GDP

Question 5

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 6

What are intermediate goods?
 Why do economists exclude the value of intermediate goods while calculating national income?

Accepted Answer

Intermediate goods are goods used as inp

Question 7

The 1960s are remembered by most economists as a period of

Accepted Answer

A) very high rates of inflation. 
B) very high rates of unemployment. 
C) price controls and low inflation. 
D) noninflationary growth. 
E) all of the above. 
A) very high rates of inflation. 
B) very high rates of unemployment. 
C) price controls and low inflation. 
D) noninflationary growth. 
E) all of the above.

Question 8

What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the

Accepted Answer

A) simultaneous occurrence of unemployment and inflation increases. 
B) simultaneous occurrence of real GDP decreases and inflation rate increases. 
C) occurrence of real GDP decreases while the unemployment rate increases. 
D) simultaneous occurrence of reduced unemployment rates and falling inflation rates. 
A) simultaneous occurrence of unemployment and inflation increases. 
B) simultaneous occurrence of real GDP decreases and inflation rate increases. 
C) occurrence of real GDP decreases while the unemployment rate increases. 
D) simultaneous occurrence of reduced unemployment rates and falling inflation rates.

Question 9

The first year of the Bush administration in 2001 could be represented as a(n)

Accepted Answer

A) increase in the aggregate demand curve. 
B) decrease in the aggregate demand curve. 
C) increase in the aggregate supply curve. 
D) decrease in the aggregate supply curve. 
A) increase in the aggregate demand curve. 
B) decrease in the aggregate demand curve. 
C) increase in the aggregate supply curve. 
D) decrease in the aggregate supply curve.

Question 10

The horizontal axis on the aggregate demand-aggregate supply model measures

Accepted Answer

A) the price of the specific product produced. 
B) the level of total output. 
C) the price level. 
D) the level of employment. 
A) the price of the specific product produced. 
B) the level of total output. 
C) the price level. 
D) the level of employment.

Question 11

Inflation refers to an increase in the

Accepted Answer

A) price level. 
B) rate of inflation. 
C) total income. 
D) real GDP. 
A) price level. 
B) rate of inflation. 
C) total income. 
D) real GDP.

Question 12

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment.​

Accepted Answer

A) True 
 B)False

Question 13

Before the Great Depression of the 1930s, most economists believed that

Accepted Answer

A) only active government policy could prevent recessions or inflation. 
B) a capitalist economy had a natural tendency to cure recessions or inflation. 
C) a capitalist economy had a natural tendency to inflation. 
D) recessions and depressions were inevitable until the economy broke down completely. 
A) only active government policy could prevent recessions or inflation. 
B) a capitalist economy had a natural tendency to cure recessions or inflation. 
C) a capitalist economy had a natural tendency to inflation. 
D) recessions and depressions were inevitable until the economy broke down completely.

Question 14

The existence of the "underground economy" causes measured GDP to overestimate actual output.

Accepted Answer

A) True 
 B)False

Question 15

While their respective subject matters differ greatly, both microeconomists and macroeconomists rely on the same basic tools; that is, both rely on

Accepted Answer

A) government contracts to promote research and publications. 
B) demand-and-supply analysis. 
C) the economic theory of John Maynard Keynes. 
D) consumer protection laws and antitrust legislation. 
A) government contracts to promote research and publications. 
B) demand-and-supply analysis. 
C) the economic theory of John Maynard Keynes. 
D) consumer protection laws and antitrust legislation.

Question 16

Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy.Figure 5-3 shows four diagrams that represent different changes in the macroeconomy.Choose the diagram that best represents the situations described in the following questions.??Figure 5-3
  
-Which graph in Figure 5-3 best represents the aggregate demand-induced Great Depression of the 1930s?

Accepted Answer

A) 1 
B) 2 
C) 3 
D) 4 
A) 1 
B) 2 
C) 3 
D) 4

Question 17

If a woman marries her housekeeper, GDP would remain constant.

Accepted Answer

A) True 
 B)False

Question 18

Stagflation is the simultaneous occurrence of inflation and high unemployment.

Accepted Answer

A) True 
 B)False

Question 19

John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene.

Accepted Answer

A) True 
 B)False

Question 20

Is GDP an accurate measure of a country's well being?

Accepted Answer

A) Yes, it is the best measure of national well being. 
B) Yes, provided we use real GDP and not nominal GDP. 
C) The answer is uncertain, depending on whether GDP is rising or falling. 
D) No, it is not. 
A) Yes, it is the best measure of national well being. 
B) Yes, provided we use real GDP and not nominal GDP. 
C) The answer is uncertain, depending on whether GDP is rising or falling. 
D) No, it is not.

Exam 22: An Introduction to Macroeconomics

Macroeconomics stresses

GDP in 2015 would not include the resale of a house built in 2000.

Cars produced by General Motors in Mexico would be included in U.S.Gross Domestic Product.

A good produced in 2009 and held in inventory until it is sold in 2010 would be included in which measure of GDP?

The definition of Gross Domestic Product is

What are intermediate goods? Why do economists exclude the value of intermediate goods while calculating national income?

The 1960s are remembered by most economists as a period of

What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the

The first year of the Bush administration in 2001 could be represented as a(n)

The horizontal axis on the aggregate demand-aggregate supply model measures

Inflation refers to an increase in the

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment.​

Before the Great Depression of the 1930s, most economists believed that

The existence of the "underground economy" causes measured GDP to overestimate actual output.

While their respective subject matters differ greatly, both microeconomists and macroeconomists rely on the same basic tools; that is, both rely on

If a woman marries her housekeeper, GDP would remain constant.

Stagflation is the simultaneous occurrence of inflation and high unemployment.

John Maynard Keynes wrote that economies can suffer recession or depression for many years if the government does not intervene.

Is GDP an accurate measure of a country's well being?

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Externalities, the Environment, and Natural Resources

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

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

He 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

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment.