Exam 16: Macroeconomics: The Birds Eye View of the Economy

"If the Federal Reserve raises interest rates, demand for housing is likely to fall" is a ________ statement about ________ policy.

In a debate on the state of the economy Senator X pointed out that the unemployment rates for teenagers, blacks, and hispanics had increased over the last year, while Senator Y stated that the unemployment rate in the United States was at its lowest level in more than 30 years. In this example, aggregate data is being used by:

A particularly strong expansion is called a(n):

When government revenue is less than government spending, the nation has a:

"If Congress cuts income taxes, demand for output is likely to increase" is a ________ statement about ________ policy.

"Privatization of government owned industries is likely to increase unemployment in the short run" is a ________ statement about ________ policy.

Macroeconomists are concerned with each of the following issues EXCEPT:

A broad government initiative to reduce a country's reliance on agriculture and promote high-technology industries is an example of ________ policy.

Unemployment typically ________ during a recession.

In Econland population and average labor productivity are constant. If a larger proportion of the population becomes employed workers, then total output will ________ and output per person will ________.

Which of the following statements is normative?

If average labor productivity increases, then the same number of employed workers will always produce:

Which of the following statement is normative?

The standard of living in an economy is best measured by:

________ analysis addresses the question of whether a policy should be used, while ________ analysis addresses the economic consequences of a particular policy.

If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:

In the 1950's and 1960's the European unemployment rate tended to be ________ the U.S. unemployment rate, while in the 1990's the European unemployment rate tended to be ________ the U.S. unemployment rate.

"Any additional increases in government spending should be for defense," is ________ statement about ________ policy.

A decision by Congress to reduce spending in order to balance the government's budget is an example of ________ policy.

In Econland population increased from 1 million to 1.1 million, the number of employed workers increased from 500,000 to 600,000, but average labor productivity decreased from $20,000 per worker per year to $18,000 per worker per year. Total output in Econland ________ and the average standard of living ________.