Question 1

Which of the following statements about leading economic indicators is true?

Accepted Answer

A) Most people refer to them before making any important spending decision. 
B) They are the only economic indicators available to economists. 
C) They indicate when the economy is in a recession or an expansion. 
D) They foreshadow turning points in the business cycle. 
E) They can predict precisely when turning points in the economy will occur. 
A) Most people refer to them before making any important spending decision. 
B) They are the only economic indicators available to economists. 
C) They indicate when the economy is in a recession or an expansion. 
D) They foreshadow turning points in the business cycle. 
E) They can predict precisely when turning points in the economy will occur.

Question 2

Exhibit 5-1    
-In Exhibit 5-1, which of the following might cause a shift in the aggregate demand curve from AD to AD'?

Accepted Answer

A) an increase in household wealth 
B) a fall in domestic interest rates 
C) an increase in government spending 
D) an appreciation of the dollar relative to other currencies 
E) a decrease in the nation's money supply 
A) an increase in household wealth 
B) a fall in domestic interest rates 
C) an increase in government spending 
D) an appreciation of the dollar relative to other currencies 
E) a decrease in the nation's money supply

Question 3

According to Keynes, in order to get the economy out of a recession, the government should

Accepted Answer

A) plan for a budget deficit 
B) encourage firms to export to other nations, thereby jump-starting the economy 
C) follow an expansionary monetary policy 
D) follow a contractionary monetary policy 
E) do nothing and rely on the market system to heal itself 
A) plan for a budget deficit 
B) encourage firms to export to other nations, thereby jump-starting the economy 
C) follow an expansionary monetary policy 
D) follow a contractionary monetary policy 
E) do nothing and rely on the market system to heal itself

Question 4

The word stagflation describes a situation in which a higher price level occurs simultaneously with

Accepted Answer

A) higher employment 
B) economic growth 
C) lower aggregate output 
D) federal budget deficits 
E) federal budget surpluses 
A) higher employment 
B) economic growth 
C) lower aggregate output 
D) federal budget deficits 
E) federal budget surpluses

Question 5

An increase in the price level

Accepted Answer

A) means that the aggregate demand curve has shifted leftward 
B) means that inflation occurred 
C) means the employment level has decreased 
D) will shift both the aggregate supply curve and the aggregate demand curve leftward 
E) will shift both the aggregate supply curve and the aggregate demand curve rightward 
A) means that the aggregate demand curve has shifted leftward 
B) means that inflation occurred 
C) means the employment level has decreased 
D) will shift both the aggregate supply curve and the aggregate demand curve leftward 
E) will shift both the aggregate supply curve and the aggregate demand curve rightward

Which of the following statements about leading economic indicators is true?

Exhibit 5-1 -In Exhibit 5-1, which of the following might cause a shift in the aggregate demand curve from AD to AD'?

According to Keynes, in order to get the economy out of a recession, the government should

The word stagflation describes a situation in which a higher price level occurs simultaneously with

An increase in the price level

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Tracking the Us Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Expenditure

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

The Algebra of Income and Expenditure

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

The Algebra of Demand-Side Equilibrium

International Trade

International Finance

Economic Development

National Income Accounts

Understanding Graphs

Variable Net Exports

Variable Net Exports Revisited

Filters

Exam 5: Introduction to Macroeconomics

Which of the following statements about leading economic indicators is true?

Exhibit 5-1 -In Exhibit 5-1, which of the following might cause a shift in the aggregate demand curve from AD to AD'?

According to Keynes, in order to get the economy out of a recession, the government should

The word stagflation describes a situation in which a higher price level occurs simultaneously with

An increase in the price level

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Tracking the Us Economy

Unemployment and Inflation

Productivity and Growth

Aggregate Expenditure

Aggregate Expenditure and Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

The Algebra of Income and Expenditure

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

The Algebra of Demand-Side Equilibrium

International Trade

International Finance

Economic Development

National Income Accounts

Understanding Graphs

Variable Net Exports

Variable Net Exports Revisited

Filters