Question 1

The ultimate objective of macroeconomics is to:

Accepted Answer

A) reduce the unemployment rate in an economy. 
B) stabilize the growth rate in an economy. 
C) develop and test theories about how the overall economy works. 
D) improve the international competitiveness of U.S.financial markets. 
E) maximize the efficiency of government intervention in the marketplace. 
A) reduce the unemployment rate in an economy. 
B) stabilize the growth rate in an economy. 
C) develop and test theories about how the overall economy works. 
D) improve the international competitiveness of U.S.financial markets. 
E) maximize the efficiency of government intervention in the marketplace.

Question 2

A recession is best defined as a period during which:

Accepted Answer

A) the percentage of the population employed increases. 
B) employment,output,and income decrease. 
C) the average price level in an economy decreases. 
D) the usage of labor and capital resources increases. 
E) budget deficit and trade deficit decrease. 
A) the percentage of the population employed increases. 
B) employment,output,and income decrease. 
C) the average price level in an economy decreases. 
D) the usage of labor and capital resources increases. 
E) budget deficit and trade deficit decrease.

Question 3

Which of the following is true of economic fluctuations?​

Accepted Answer

A) They can be experienced by the world economy as well as by a single nation. 
B) They tend to be equal in length and intensity. 
C) They reflect an economy's socio-political condition. 
D) They tend to become more severe when the government attempts to stabilize an economy. 
E) They have been completely offset by appropriate government policies during the last 40 years. 
A) They can be experienced by the world economy as well as by a single nation. 
B) They tend to be equal in length and intensity. 
C) They reflect an economy's socio-political condition. 
D) They tend to become more severe when the government attempts to stabilize an economy. 
E) They have been completely offset by appropriate government policies during the last 40 years.

Question 4

Which of the following financial institutions reported the largest bankruptcy in U.S.history in September 2008?

Accepted Answer

A) Morgan Stanley 
B) Goldman Sachs 
C) Lehman Brothers 
D) JP Morgan Chase 
E) Barclays Capital 
A) Morgan Stanley 
B) Goldman Sachs 
C) Lehman Brothers 
D) JP Morgan Chase 
E) Barclays Capital

Question 5

Which of the following is a flow variable?

Accepted Answer

A) Price level 
B) U.S.population 
C) Money supply 
D) Investment spending 
E) Household debt 
A) Price level 
B) U.S.population 
C) Money supply 
D) Investment spending 
E) Household debt

Question 6

For a given aggregate supply curve,price level and output will both increase when aggregate demand decreases.

Accepted Answer

A) True 
 B)False

Question 7

Identify an example of a flow variable.​

Accepted Answer

A) The volume of the federal government's debt 
B) The population of a country in a particular year 
C) The total amount of an individual's wealth 
D) The amount of sales tax collected per year 
E) The total amount of unemployment in an economy 
A) The volume of the federal government's debt 
B) The population of a country in a particular year 
C) The total amount of an individual's wealth 
D) The amount of sales tax collected per year 
E) The total amount of unemployment in an economy

Question 8

Which of these is true of the mercantilism policy?

Accepted Answer

A) It accepts gold as a medium of exchange. 
B) It encourages free movement of labor and capital resources between nations. 
C) It emphasizes government control over the production of important goods and services. 
D) It emphasizes the importance of trade restrictions in achieving economic growth. 
E) It believes that a nation's economic vitality depends on its unemployment level. 
A) It accepts gold as a medium of exchange. 
B) It encourages free movement of labor and capital resources between nations. 
C) It emphasizes government control over the production of important goods and services. 
D) It emphasizes the importance of trade restrictions in achieving economic growth. 
E) It believes that a nation's economic vitality depends on its unemployment level.

Question 9

A period of sustained growth in output in an economy is referred to as a(n)_____.​

Accepted Answer

A) expansion 
B) contraction​ 
C) peak​ 
D) trough​ 
E) recession​ 
A) expansion 
B) contraction​ 
C) peak​ 
D) trough​ 
E) recession​

Question 10

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

Accepted Answer

A) True 
 B)False

Question 11

An example of a stock variable in economic theory will be:

Accepted Answer

A) the amount of money saved by an individual each week. 
B) the amount of money spent on buying gasoline each month. 
C) the weekly grocery bill of an average household. 
D) the total value of the government bond held by an individual. 
E) the total fiscal spending during a particular quarter. 
A) the amount of money saved by an individual each week. 
B) the amount of money spent on buying gasoline each month. 
C) the weekly grocery bill of an average household. 
D) the total value of the government bond held by an individual. 
E) the total fiscal spending during a particular quarter.

Question 12

Identify the correct statement.

Accepted Answer

A) A budget deficit is a flow variable,while debt is a stock variable. 
B) A budget deficit is a stock variable,while debt is a flow variable. 
C) A budget deficit and debt are both stock variables. 
D) The budget deficit decreases when aggregate demand decreases. 
E) Debt increases when the budget deficit decreases. 
A) A budget deficit is a flow variable,while debt is a stock variable. 
B) A budget deficit is a stock variable,while debt is a flow variable. 
C) A budget deficit and debt are both stock variables. 
D) The budget deficit decreases when aggregate demand decreases. 
E) Debt increases when the budget deficit decreases.

Question 13

If the price level in the U.S.increases,aggregate output demanded:​

Accepted Answer

A) decreases because U.S.products become cheaper relative to foreign products. 
B) decreases because U.S.products become more expensive relative to foreign products. 
C) increases because U.S.products become cheaper relative to foreign products. 
D) increases because U.S.products become more expensive relative to foreign products. 
E) decreases because household wealth and spending increase. 
A) decreases because U.S.products become cheaper relative to foreign products. 
B) decreases because U.S.products become more expensive relative to foreign products. 
C) increases because U.S.products become cheaper relative to foreign products. 
D) increases because U.S.products become more expensive relative to foreign products. 
E) decreases because household wealth and spending increase.

Question 14

An example of a flow variable in economics is:

Accepted Answer

A) the total amount of bank loan taken by Emily. 
B) the value of an apartment owned by Jerome. 
C) the price of an antique painting used to decorate an office. 
D) the earnings of Malaya from piano classes each month. 
E) the total value of the U.S.treasury bonds held by China. 
A) the total amount of bank loan taken by Emily. 
B) the value of an apartment owned by Jerome. 
C) the price of an antique painting used to decorate an office. 
D) the earnings of Malaya from piano classes each month. 
E) the total value of the U.S.treasury bonds held by China.

Question 15

_____ varies along a given aggregate demand curve.​

Accepted Answer

A) The nominal interest rate in the domestic country 
B) The exchange rate between the domestic currency and a foreign currency​ 
C) The aggregate supply in a foreign country​ 
D) The price level in the domestic country​ 
E) The prices of resources used in production​ 
A) The nominal interest rate in the domestic country 
B) The exchange rate between the domestic currency and a foreign currency​ 
C) The aggregate supply in a foreign country​ 
D) The price level in the domestic country​ 
E) The prices of resources used in production​

Question 16

In the 1960s,government policy makers believed that they could:

Accepted Answer

A) stabilize the economy by letting the market system solve all problems. 
B) reduce unemployment by running federal budget surpluses. 
C) eliminate government's role in stabilization policy. 
D) use changes in the money supply to virtually eliminate business cycles. 
E) use taxation and government spending to fine-tune the economy. 
A) stabilize the economy by letting the market system solve all problems. 
B) reduce unemployment by running federal budget surpluses. 
C) eliminate government's role in stabilization policy. 
D) use changes in the money supply to virtually eliminate business cycles. 
E) use taxation and government spending to fine-tune the economy.

Question 17

Which of the following statements regarding the gross domestic product is true?

Accepted Answer

A) It is useful in comparing the overall performance of different economies at the same time. 
B) It measures aggregate income in an economy over a period of ten years. 
C) It measures the value of all goods and services produced in the world during a given period. 
D) It is a measure of an economy's price level during a particular year. 
E) It records the cumulative value of all goods and services produced by domestically owned factors of production. 
A) It is useful in comparing the overall performance of different economies at the same time. 
B) It measures aggregate income in an economy over a period of ten years. 
C) It measures the value of all goods and services produced in the world during a given period. 
D) It is a measure of an economy's price level during a particular year. 
E) It records the cumulative value of all goods and services produced by domestically owned factors of production.

Question 18

The Reagan administration's policies were aimed at managing aggregate demand.

Accepted Answer

A) True 
 B)False

Question 19

The tax cuts passed during the Reagan administration were designed primarily to:

Accepted Answer

A) boost savings among consumers. 
B) shift the aggregate demand curve rightward. 
C) reduce the balance-of-payments deficit. 
D) increase the supply of productive resources. 
E) increase the tax base and include more tax payers. 
A) boost savings among consumers. 
B) shift the aggregate demand curve rightward. 
C) reduce the balance-of-payments deficit. 
D) increase the supply of productive resources. 
E) increase the tax base and include more tax payers.

Question 20

Which of these statements best describes a flow variable?

Accepted Answer

A) An economic variable that measures something at a particular point in time 
B) An economic variable whose value is determined by the market 
C) An economic variable that is measured per unit of time 
D) An economic variable whose value shows no change over time 
E) An economic variable that remains static when other related variables change 
A) An economic variable that measures something at a particular point in time 
B) An economic variable whose value is determined by the market 
C) An economic variable that is measured per unit of time 
D) An economic variable whose value shows no change over time 
E) An economic variable that remains static when other related variables change

The ultimate objective of macroeconomics is to:

A recession is best defined as a period during which:

Which of the following is true of economic fluctuations?

Which of the following financial institutions reported the largest bankruptcy in U.S.history in September 2008?

Which of the following is a flow variable?

For a given aggregate supply curve,price level and output will both increase when aggregate demand decreases.

Identify an example of a flow variable.

Which of these is true of the mercantilism policy?

A period of sustained growth in output in an economy is referred to as a(n)_____.

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

An example of a stock variable in economic theory will be:

Identify the correct statement.

If the price level in the U.S.increases,aggregate output demanded:

An example of a flow variable in economics is:

_____ varies along a given aggregate demand curve.

In the 1960s,government policy makers believed that they could:

Which of the following statements regarding the gross domestic product is true?

The Reagan administration's policies were aimed at managing aggregate demand.

The tax cuts passed during the Reagan administration were designed primarily to:

Which of these statements best describes a flow variable?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Exam 5: Introduction to Macroeconomics

The ultimate objective of macroeconomics is to:

A recession is best defined as a period during which:

Which of the following is true of economic fluctuations?​

Which of the following financial institutions reported the largest bankruptcy in U.S.history in September 2008?

Which of the following is a flow variable?

For a given aggregate supply curve,price level and output will both increase when aggregate demand decreases.

Identify an example of a flow variable.​

Which of these is true of the mercantilism policy?

A period of sustained growth in output in an economy is referred to as a(n)_____.​

The gross domestic product measures the value of all final goods and services produced by resources owned by a nation.

An example of a stock variable in economic theory will be:

Identify the correct statement.

If the price level in the U.S.increases,aggregate output demanded:​

An example of a flow variable in economics is:

_____ varies along a given aggregate demand curve.​

In the 1960s,government policy makers believed that they could:

Which of the following statements regarding the gross domestic product is true?

The Reagan administration's policies were aimed at managing aggregate demand.

The tax cuts passed during the Reagan administration were designed primarily to:

Which of these statements best describes a flow variable?

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, supply, and Markets

Tracking the Useconomy

Unemployment and Inflation

Productivity and Growth

Aggregate Demand

Aggregate Supply

Fiscal Policy

Federal Budgets and Public Policy

Money and the Financial System

Banking and the Money Supply

Monetary Theory and Policy

Macro Policy Debate: Active or Passive

International Trade

International Finance

Economic Development

Filters

Which of the following is true of economic fluctuations?

Identify an example of a flow variable.

A period of sustained growth in output in an economy is referred to as a(n)_____.

If the price level in the U.S.increases,aggregate output demanded:

_____ varies along a given aggregate demand curve.