Exam 1: Introduction to Macroeconomics

Using the CPI measure of the price level,which is 100 in the base year of 2007,calculate the annual inflation rates for (a)2008,when the index is 103.7. (b)2009,when the index is 105.5. (c)2010,when the index is 107.7.

What are the major factors affecting the long-term growth of the economy's output?

Critics of the government's fiscal policies argued that government deficits

The unemployment rate is the

The two most comprehensive,widely accepted macroeconomic models are

In which of the following periods did average labor productivity in the United States grow the fastest?

Adam Smith's idea of the "invisible hand" says that given a country's resources and its initial distribution of wealth,the use of markets will

Compare and contrast the classical and Keynesian schools of thought for the following economic issues. (a)The flexibility of wages and prices. (b)The importance of macroeconomic policies.

When national output rises,the economy is said to be in

Why is wage and price flexibility crucial to the idea of the "invisible hand?"

The peak in U.S.government spending as a percent of GDP occurred during

A country has a trade surplus when

Classical economists argue that

Match each of the following jobs to its major area: forecasting,analysis,research,or data development.Explain your answers. (a)Economist at university,testing theories about the efficient allocation of resources in the foreign exchange market (b)Economist at Wall Street firm trying to predict the rate of inflation next year using past data (c)Economist at auto firm looking at demand for new automobiles (d)Economist at the International Trade Commission trying to determine whether foreign firms are dumping goods in the United States (e)Economist at the Commerce Department developing new methods for calculating price indexes (f)Economist consulting in Eastern Europe about how to set up free-market financial systems.

An economy that doesn't interact economically with the rest of the world is called ________ economy.

The main reason that the United States has such a high standard of living is

During the Great Depression,the unemployment rate for the United States peaked at approximately

Positive analysis of economic policy

Average labor productivity is the

Why were the U.S.government budget deficits of the 1980s and early 1990s so unusual from a historical point of view?