Question 1

For the period 1947-2012 in the United States,the price level was

Accepted Answer

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

Question 2

A positive relationship between the rate of change in money prices and real GDP is

Accepted Answer

A)  a leading relationship 
B)  a lagging relationship. 
C)  an example of countercyclicality. 
D)  a Phillips curve. 
A)  a leading relationship 
B)  a lagging relationship. 
C)  an example of countercyclicality. 
D)  a Phillips curve.

Question 3

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

Accepted Answer

A)  Investment fluctuates less than GDP. 
B)  Consumption fluctuates less than GDP. 
C)  Employment fluctuates less than GDP. 
D)  Average labor productivity fluctuates less than GDP. 
A)  Investment fluctuates less than GDP. 
B)  Consumption fluctuates less than GDP. 
C)  Employment fluctuates less than GDP. 
D)  Average labor productivity fluctuates less than GDP.

Question 4

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

Accepted Answer

A)  Investment is procyclical. 
B)  Consumption is procyclical. 
C)  Investment is highly variable. 
D)  Consumption is highly variable. 
A)  Investment is procyclical. 
B)  Consumption is procyclical. 
C)  Investment is highly variable. 
D)  Consumption is highly variable.

Question 5

Employment tends to

Accepted Answer

A)  lead the cycle. 
B)  be coincident with the cycle. 
C)  lag the cycle. 
D)  sometimes lead, sometimes lag the cycle. 
A)  lead the cycle. 
B)  be coincident with the cycle. 
C)  lag the cycle. 
D)  sometimes lead, sometimes lag the cycle.

Question 6

A turning point is

Accepted Answer

A)  a change in policy. 
B)  a peak or a trough. 
C)  a boom or a recession. 
D)  a zero deviation from trend. 
A)  a change in policy. 
B)  a peak or a trough. 
C)  a boom or a recession. 
D)  a zero deviation from trend.

Question 7

If the correlation between GDP and y is -0.75,we say y is

Accepted Answer

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

Question 8

The official dating of the most recent recession places its timing as

Accepted Answer

A)  2007. 
B)  2007-2009. 
C)  2008. 
D)  2008-2009. 
A)  2007. 
B)  2007-2009. 
C)  2008. 
D)  2008-2009.

Question 9

Macroeconomic forecasting is made easier due to the fact that

Accepted Answer

A)  real GDP is variable about trend. 
B)  the business cycle has a regular frequency. 
C)  deviations from trend in real GDP are persistent. 
D)  turning points are easy to predict. 
A)  real GDP is variable about trend. 
B)  the business cycle has a regular frequency. 
C)  deviations from trend in real GDP are persistent. 
D)  turning points are easy to predict.

Question 10

The defining feature of business cycles is that they

Accepted Answer

A)  are inherently bad. 
B)  represent the underlying trend of real GDP in the economy. 
C)  are fluctuations about trend in real GDP. 
D)  measure prospects for future growth in the economy. 
A)  are inherently bad. 
B)  represent the underlying trend of real GDP in the economy. 
C)  are fluctuations about trend in real GDP. 
D)  measure prospects for future growth in the economy.

Question 11

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

Accepted Answer

A)  coincidence. 
B)  co-movement. 
C)  correlation. 
D)  coexistence. 
A)  coincidence. 
B)  co-movement. 
C)  correlation. 
D)  coexistence.

Question 12

If x is useful for predicting future GDP then

Accepted Answer

A)  x is coincident. 
B)  x is a lagging variable. 
C)  x is countercyclical. 
D)  x is a leading variable. 
A)  x is coincident. 
B)  x is a lagging variable. 
C)  x is countercyclical. 
D)  x is a leading variable.

Question 13

If the correlation between GDP and y is 0,we say y is

Accepted Answer

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

Question 14

One example of a Phillips Curve would be a

Accepted Answer

A)  positive relationship between deviations from trend in real and nominal interest rates. 
B)  negative relationship between deviations from trend in real and nominal interest rates. 
C)  positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity. 
D)  negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity. 
A)  positive relationship between deviations from trend in real and nominal interest rates. 
B)  negative relationship between deviations from trend in real and nominal interest rates. 
C)  positive relationship between deviations from trend in the level of prices and the level of aggregate economic activity. 
D)  negative relationship between deviations from trend in the level of prices and the level of aggregate economic activity.

Question 15

Which of the following is NOT a feature of recent U.S. business cycles?

Accepted Answer

A)  The time series of deviations from trend in real GDP is quite choppy. 
B)  The time series of deviations from trend in real GDP is quite smooth. 
C)  There is no regularity to the amplitude of fluctuations in real GDP above trend. 
D)  There is no regularity to the frequency of fluctuations in real GDP above trend. 
A)  The time series of deviations from trend in real GDP is quite choppy. 
B)  The time series of deviations from trend in real GDP is quite smooth. 
C)  There is no regularity to the amplitude of fluctuations in real GDP above trend. 
D)  There is no regularity to the frequency of fluctuations in real GDP above trend.

Question 16

Before 2000,the three most recent U.S. recessions occurred in

Accepted Answer

A)  1969-1973, 1979-1982, and 1994-1995. 
B)  1973-1975, 1982-1985, and 1990-1991. 
C)  1973-1975, 1981-1982, and 1990-1991. 
D)  1981-1982, 1990-1991, and 1998-1999. 
A)  1969-1973, 1979-1982, and 1994-1995. 
B)  1973-1975, 1982-1985, and 1990-1991. 
C)  1973-1975, 1981-1982, and 1990-1991. 
D)  1981-1982, 1990-1991, and 1998-1999.

For the period 1947-2012 in the United States,the price level was

A positive relationship between the rate of change in money prices and real GDP is

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

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

Employment tends to

A turning point is

If the correlation between GDP and y is -0.75,we say y is

The official dating of the most recent recession places its timing as

Macroeconomic forecasting is made easier due to the fact that

The defining feature of business cycles is that they

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

If x is useful for predicting future GDP then

If the correlation between GDP and y is 0,we say y is

One example of a Phillips Curve would be a

Which of the following is NOT a feature of recent U.S. business cycles?

Before 2000,the three most recent U.S. recessions occurred in

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

For the period 1947-2012 in the United States,the price level was

A positive relationship between the rate of change in money prices and real GDP is

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

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

Employment tends to

A turning point is

If the correlation between GDP and y is -0.75,we say y is

The official dating of the most recent recession places its timing as

Macroeconomic forecasting is made easier due to the fact that

The defining feature of business cycles is that they

The property that macroeconomic variables fluctuate together in patterns that exhibit strong regularities is called

If x is useful for predicting future GDP then

If the correlation between GDP and y is 0,we say y is

One example of a Phillips Curve would be a

Which of the following is NOT a feature of recent U.S. business cycles?

Before 2000,the three most recent U.S. recessions occurred in

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