Question 1

Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are called:

Accepted Answer

A) leading indicators. 
B) coincident indicators. 
C) lagging indicators. 
D) none of the above. 
A) leading indicators. 
B) coincident indicators. 
C) lagging indicators. 
D) none of the above. C

Question 2

Briefly explain the difference between leading, coincident, and lagging indicators.

Accepted Answer

Leading indicators are economic variables that generally turn down before a recession begins and turn back up before the recovery starts.Coincident indicators are economic variables that tend to move in tandem with the overall phases of the business cycle.Lagging indicators are economic variables that turn down after the beginning of a recession and turn up after a recovery has begun.

Question 3

An income tax system where higher tax rates are applied to increased amounts of income is called:

Accepted Answer

A) a regressive tax system. 
B) a proportional tax system. 
C) a progressive tax system. 
D) a flat rate tax system. 
A) a regressive tax system. 
B) a proportional tax system. 
C) a progressive tax system. 
D) a flat rate tax system. C

Question 4

Explain how the aggregate demand curve is derived.

Accepted Answer

Let the price level decrease resulting i

Question 5

Why is judging trends in economic indicators important to managers?

Accepted Answer

Managers need to be able to react to bot

Question 6

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Accepted Answer

A) True 
 B)False

Question 7

Average duration of unemployment is an example of a:

Accepted Answer

A) leading indicator. 
B) coincident indicator. 
C) lagging indicator. 
D) none of the above. 
A) leading indicator. 
B) coincident indicator. 
C) lagging indicator. 
D) none of the above.

Question 8

An increase in the costs of resources or inputs of production would shift the:

Accepted Answer

A) short-run aggregate supply curve rightward. 
B) short-run aggregate supply curve leftward. 
C) long-run aggregate supply curve rightward. 
D) long-run aggregate supply curve leftward. 
A) short-run aggregate supply curve rightward. 
B) short-run aggregate supply curve leftward. 
C) long-run aggregate supply curve rightward. 
D) long-run aggregate supply curve leftward.

Question 9

Business debt is an example of a lagging indicator.

Accepted Answer

A) True 
 B)False

Question 10

An increase in consumer wealth would shift the aggregate demand curve rightward.

Accepted Answer

A) True 
 B)False

Question 11

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

Accepted Answer

A) leading indicators. 
B) coincident indicators. 
C) lagging indicators. 
D) none of the above. 
A) leading indicators. 
B) coincident indicators. 
C) lagging indicators. 
D) none of the above.

Question 12

Unemployment compensation is an example of:

Accepted Answer

A) non-discretionary expenditures. 
B) discretionary expenditures. 
C) taxes. 
D) none of the above. 
A) non-discretionary expenditures. 
B) discretionary expenditures. 
C) taxes. 
D) none of the above.

Question 13

Aggregate supply changes much faster than aggregate demand.

Accepted Answer

A) True 
 B)False

Question 14

A decrease in efficiency would shift the long-run aggregate supply curve:

Accepted Answer

A) rightward. 
B) leftward. 
C) no shift. 
D) none of the above. 
A) rightward. 
B) leftward. 
C) no shift. 
D) none of the above.

Question 15

A decrease in the costs of resources or inputs of production would shift the:

Accepted Answer

A) short-run aggregate supply curve rightward. 
B) short-run aggregate supply curve leftward. 
C) long-run aggregate supply curve rightward. 
D) long-run aggregate supply curve leftward. 
A) short-run aggregate supply curve rightward. 
B) short-run aggregate supply curve leftward. 
C) long-run aggregate supply curve rightward. 
D) long-run aggregate supply curve leftward.

Question 16

A decrease in wealth would shift the:

Accepted Answer

A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward. 
A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward.

Question 17

In the short-run along the horizontal portion of the aggregate supply curve, an increase in the budget deficit and an expansionary monetary policy would:

Accepted Answer

A) increase the price level only. 
B) increase both the price level and real income. 
C) increase real income only. 
D) none of the above. 
A) increase the price level only. 
B) increase both the price level and real income. 
C) increase real income only. 
D) none of the above.

Question 18

Industrial production is an example of a coincident indicator.

Accepted Answer

A) True 
 B)False

Question 19

A decrease in the nominal money supply would shift the:

Accepted Answer

A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward. 
A) aggregate demand curve rightward. 
B) aggregate demand curve leftward. 
C) aggregate supply curve rightward. 
D) aggregate supply curve leftward.

Question 20

Manufacturing, employment, monetary, and consumer expectations statistics are examples of lagging indicators.

Accepted Answer

A) True 
 B)False

Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are called:

Briefly explain the difference between leading, coincident, and lagging indicators.

An income tax system where higher tax rates are applied to increased amounts of income is called:

Explain how the aggregate demand curve is derived.

Why is judging trends in economic indicators important to managers?

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Average duration of unemployment is an example of a:

An increase in the costs of resources or inputs of production would shift the:

Business debt is an example of a lagging indicator.

An increase in consumer wealth would shift the aggregate demand curve rightward.

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

Unemployment compensation is an example of:

Aggregate supply changes much faster than aggregate demand.

A decrease in efficiency would shift the long-run aggregate supply curve:

A decrease in the costs of resources or inputs of production would shift the:

A decrease in wealth would shift the:

In the short-run along the horizontal portion of the aggregate supply curve, an increase in the budget deficit and an expansionary monetary policy would:

Industrial production is an example of a coincident indicator.

A decrease in the nominal money supply would shift the:

Manufacturing, employment, monetary, and consumer expectations statistics are examples of lagging indicators.

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

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Exam 14: The Aggregate Model of the Macro Economy

Economic variables that generally turn down after a recession begins and turn back up after the recovery starts are called:

Briefly explain the difference between leading, coincident, and lagging indicators.

An income tax system where higher tax rates are applied to increased amounts of income is called:

Explain how the aggregate demand curve is derived.

Why is judging trends in economic indicators important to managers?

Federal spending and taxation both affect and are influenced by the overall level of economic activity.

Average duration of unemployment is an example of a:

An increase in the costs of resources or inputs of production would shift the:

Business debt is an example of a lagging indicator.

An increase in consumer wealth would shift the aggregate demand curve rightward.

Economic variables that generally move in tandem with the overall phases of the business cycle are called:

Unemployment compensation is an example of:

Aggregate supply changes much faster than aggregate demand.

A decrease in efficiency would shift the long-run aggregate supply curve:

A decrease in the costs of resources or inputs of production would shift the:

A decrease in wealth would shift the:

In the short-run along the horizontal portion of the aggregate supply curve, an increase in the budget deficit and an expansionary monetary policy would:

Industrial production is an example of a coincident indicator.

A decrease in the nominal money supply would shift the:

Manufacturing, employment, monetary, and consumer expectations statistics are examples of lagging indicators.

Managers and Economics

Demand, Supply, and Equilibrium Prices

Demand Elasticities

Techniques for Understanding Consumer Demand and Behavior

Production and Cost Analysis in the Short Run

Production and Cost Analysis in the Long Run

Market Structure: Perfect Competition

Market Structure: Monopoly and Monopolistic Competition

Market Structure: Oligopoly

Pricing Strategies for the Firm

Measuring Macroeconomic Activity

Spending by Individuals, Firms, and Governments on Real Goods and Services

The Role of Money in the Macro Economy

International and Balance of Payments Issues in the Macro Economy

Combining Micro and Macro Analysis for Managerial Decision Making

Filters