Exam 1: Introduction to Macroeconomics

A central bank is an institution that

Keynes was motivated to create a macroeconomic theory different from classical theory because

From 1800 to 1940,the price level in the United States

Which of the following best describes a typical business cycle?

An open economy is a national economy that

Assumptions for economic theories and models should be

Keynes assumed that wages and prices were slow to adjust in order to explain

Following World War I and World War II,the United States had a

The two major reasons for the tremendous growth in output in the U.S.economy over the last 125 years are

The number of unemployed divided by the labor force equals

In analyzing macroeconomic data during the past year,you have discovered that average labor productivity fell,but total output increased.What was most likely to have caused this?

A country is said to be experiencing inflation when

In 1993,the debate heated up in the United States about the North American Free Trade Agreement (NAFTA),which proposed to reduce barriers to trade (such as taxes on or limits to imports)among Canada,the United States,and Mexico.Some people opposed strongly the agreement,arguing that an influx of foreign goods under NAFTA would disrupt the U.S.economy,harm domestic industries,and throw American workers out of work.How might a classical economist respond to these concerns? Would you expect a Keynesian economist to be more or less sympathetic to these concerns than the classical economist? Why?

The main goal of macroeconomic research is to

Short-run contractions and expansions in economic activity are called

Data on exports and imports for the United States over the period from 1890 to 2008 show that

What is meant by aggregation? Why is aggregation important for macroeconomic analysis?

If the theory behind an economic model fits the data poorly,you would probably want to

Equilibrium in the economy means

In the 1980s,1990s,and 2000s,the United States has had a