Question 1

Positive correlation between x and y implies that

Accepted Answer

A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  when x is zero, y is positive. 
D)  x and y are positively unrelated. 
A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  when x is zero, y is positive. 
D)  x and y are positively unrelated.

Question 2

For the period 1947-2012 in the United States,the money supply was

Accepted Answer

A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging.

Question 3

After 1980,the following is true

Accepted Answer

A)  money is a leading variable. 
B)  any lead/lag relationship between money and real GDP is difficult to detect. 
C)  money is a lagging variable. 
D)  money is coincident. 
A)  money is a leading variable. 
B)  any lead/lag relationship between money and real GDP is difficult to detect. 
C)  money is a lagging variable. 
D)  money is coincident.

Question 4

Forecasting the future path of real GDP by exploiting past statistical relationships

Accepted Answer

A)  is never very reliable. 
B)  can be accomplished by the construction and use of an index of leading variables. 
C)  can be accomplished by the construction and use of an index of lagging variables. 
D)  can be accomplished by the construction and use of an index of coincident variables. 
A)  is never very reliable. 
B)  can be accomplished by the construction and use of an index of leading variables. 
C)  can be accomplished by the construction and use of an index of lagging variables. 
D)  can be accomplished by the construction and use of an index of coincident variables.

Question 5

Difficulties in determining the cyclical pattern in real wage rates from aggregate data are primarily caused by biases due to

Accepted Answer

A)  substitution behavior. 
B)  substantial differences across different business cycles. 
C)  variations in the composition of the labor force over the business cycle. 
D)  changing policy responses to business cycles. 
A)  substitution behavior. 
B)  substantial differences across different business cycles. 
C)  variations in the composition of the labor force over the business cycle. 
D)  changing policy responses to business cycles.

Question 6

The weight of empirical evidence suggests that in the United States,the real wage rate is

Accepted Answer

A)  acyclical. 
B)  bicyclical. 
C)  procyclical. 
D)  countercyclical. 
A)  acyclical. 
B)  bicyclical. 
C)  procyclical. 
D)  countercyclical.

Question 7

For the period 1947-2012,employment in the United States was

Accepted Answer

A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging. 
A)  procyclical and leading. 
B)  procyclical and lagging. 
C)  countercyclical and leading. 
D)  countercyclical and lagging.

Question 8

A business cycle peak is a

Accepted Answer

A)  small positive deviation from trend in real GDP. 
B)  relatively large positive deviation from trend in real GDP. 
C)  small negative deviation from trend in real GDP. 
D)  relatively large negative deviation from trend in real GDP. 
A)  small positive deviation from trend in real GDP. 
B)  relatively large positive deviation from trend in real GDP. 
C)  small negative deviation from trend in real GDP. 
D)  relatively large negative deviation from trend in real GDP.

Question 9

If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP,that variable is said to be

Accepted Answer

A)  useful in predicting future movements in real GDP. 
B)  procyclical. 
C)  countercyclical. 
D)  acyclical. 
A)  useful in predicting future movements in real GDP. 
B)  procyclical. 
C)  countercyclical. 
D)  acyclical.

Question 10

The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with

Accepted Answer

A)  Lucas and Friedman. 
B)  Friedman and Schwartz. 
C)  Kydland and Prescott. 
D)  David Runkle. 
A)  Lucas and Friedman. 
B)  Friedman and Schwartz. 
C)  Kydland and Prescott. 
D)  David Runkle.

Question 11

Average labor productivity is computed as the

Accepted Answer

A)  ratio of industrial production to the employment rate. 
B)  ratio of real output in manufacturing to the level of real GDP. 
C)  ratio of real GDP to the unemployment rate. 
D)  ratio of real GDP to the level of employment. 
A)  ratio of industrial production to the employment rate. 
B)  ratio of real output in manufacturing to the level of real GDP. 
C)  ratio of real GDP to the unemployment rate. 
D)  ratio of real GDP to the level of employment.

Question 12

If the correlation between GDP and y is 0.55,we say y is

Accepted Answer

A)  procyclical. 
B)  acyclical. 
C)  countercyclical. 
D)  tricyclical. 
A)  procyclical. 
B)  acyclical. 
C)  countercyclical. 
D)  tricyclical.

Question 13

Average labor productivity tends to be

Accepted Answer

A)  procyclical and less variable than real GDP. 
B)  procyclical and more variable than real GDP. 
C)  countercyclical and less variable than real GDP. 
D)  countercyclical and more variable than real GDP. 
A)  procyclical and less variable than real GDP. 
B)  procyclical and more variable than real GDP. 
C)  countercyclical and less variable than real GDP. 
D)  countercyclical and more variable than real GDP.

Question 14

Business cycle persistence refers to the property that

Accepted Answer

A)  real GDP is rarely exactly at trend. 
B)  booms and recessions last a long time. 
C)  when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend. 
D)  business cycles are persistently hard to predict. 
A)  real GDP is rarely exactly at trend. 
B)  booms and recessions last a long time. 
C)  when real GDP is above trend, it tends to stay above trend, and when it is below trend, it tends to stay below trend. 
D)  business cycles are persistently hard to predict.

Question 15

Employment tends to be

Accepted Answer

A)  procyclical and less variable than real GDP. 
B)  procyclical and more variable than real GDP. 
C)  countercyclical and less variable than real GDP. 
D)  countercyclical and more variable than real GDP. 
A)  procyclical and less variable than real GDP. 
B)  procyclical and more variable than real GDP. 
C)  countercyclical and less variable than real GDP. 
D)  countercyclical and more variable than real GDP.

Question 16

Which of the following is not a correct characterization of the U.S. business cycle?

Accepted Answer

A)  Employment is procyclical. 
B)  Average labor productivity is countercyclical. 
C)  Wages are procyclical. 
D)  Money is procyclical. 
A)  Employment is procyclical. 
B)  Average labor productivity is countercyclical. 
C)  Wages are procyclical. 
D)  Money is procyclical.

Question 17

For the period 1947-2012,the behavior of the U.S. money supply is best characterized as

Accepted Answer

A)  nearly constant over time. 
B)  somewhat smoother than GDP. 
C)  somewhat more volatile than GDP. 
D)  extremely volatile and unstable. 
A)  nearly constant over time. 
B)  somewhat smoother than GDP. 
C)  somewhat more volatile than GDP. 
D)  extremely volatile and unstable.

Question 18

Negative correlation between x and y implies that

Accepted Answer

A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  xy < 0. 
D)  x/y < 0. 
A)  when x is high, y is high. 
B)  when x is high, y is low. 
C)  xy < 0. 
D)  x/y < 0.

Question 19

Which of the following is not a correct characterization of the U.S. business cycle?

Accepted Answer

A)  Money is countercyclical. 
B)  Employment is procyclical. 
C)  Labor productivity is procyclical. 
D)  Prices are countercyclical. 
A)  Money is countercyclical. 
B)  Employment is procyclical. 
C)  Labor productivity is procyclical. 
D)  Prices are countercyclical.

Question 20

If a macroeconomic variable tends to aid in predicting the future path of real GDP,it is said to be a

Accepted Answer

A)  convenient variable. 
B)  coincident variable. 
C)  leading variable. 
D)  lagging variable. 
A)  convenient variable. 
B)  coincident variable. 
C)  leading variable. 
D)  lagging variable.

Positive correlation between x and y implies that

For the period 1947-2012 in the United States,the money supply was

After 1980,the following is true

Forecasting the future path of real GDP by exploiting past statistical relationships

Difficulties in determining the cyclical pattern in real wage rates from aggregate data are primarily caused by biases due to

The weight of empirical evidence suggests that in the United States,the real wage rate is

For the period 1947-2012,employment in the United States was

A business cycle peak is a

If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP,that variable is said to be

The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with

Average labor productivity is computed as the

If the correlation between GDP and y is 0.55,we say y is

Average labor productivity tends to be

Business cycle persistence refers to the property that

Employment tends to be

Which of the following is not a correct characterization of the U.S. business cycle?

For the period 1947-2012,the behavior of the U.S. money supply is best characterized as

Negative correlation between x and y implies that

Which of the following is not a correct characterization of the U.S. business cycle?

If a macroeconomic variable tends to aid in predicting the future path of real GDP,it is said to be a

Introduction

Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption-Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters

Exam 3: Business Cycle Measurement

Positive correlation between x and y implies that

For the period 1947-2012 in the United States,the money supply was

After 1980,the following is true

Forecasting the future path of real GDP by exploiting past statistical relationships

Difficulties in determining the cyclical pattern in real wage rates from aggregate data are primarily caused by biases due to

The weight of empirical evidence suggests that in the United States,the real wage rate is

For the period 1947-2012,employment in the United States was

A business cycle peak is a

If deviations from trend in a macroeconomic variable are positively correlated with deviations from trend in real GDP,that variable is said to be

The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with

Average labor productivity is computed as the

If the correlation between GDP and y is 0.55,we say y is

Average labor productivity tends to be

Business cycle persistence refers to the property that

Employment tends to be

Which of the following is not a correct characterization of the U.S. business cycle?

For the period 1947-2012,the behavior of the U.S. money supply is best characterized as

Negative correlation between x and y implies that

Which of the following is not a correct characterization of the U.S. business cycle?

If a macroeconomic variable tends to aid in predicting the future path of real GDP,it is said to be a

Introduction

Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption-Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters