Exam 1: What Is Macroeconomics

Figure 1-1 -When the actual unemployment rate is likely to exceed the natural rate of unemployment,as in the time intervals between t1 and t2 and t3 and t4 in Figure 1-1 above,we can expect that

Figure 1-2 -The "zero sum" society is

Approaching a business cycle peak,actual real GDP ________ natural real GDP,which causes inflation to ________.

Going from a closed to an open economy ________ macroeconomic policymaking,especially now that exchange rates are ________.

By participating in international financial markets,a nation can finance its government budget deficit in part by ________,which ________ the link between the nation's deficit and its internal private investment.

Immediately following a business cycle "peak" comes a

Political incumbents often gain or lose re-election because of a strong or weak economy.Which of the following is an exception to that rule?

The recession of 1990-1992 ________ the trend set over 1965-1990 of ________ unemployment rates at each successive cyclical trough.

In an economy where actual real GDP is always equal to the natural real GDP,inflation

Macroeconomics is the study of

When actual real GDP is equal to the natural real GDP,the unemployment rate is