Exam 5: Introduction to Macroeconomics

Keynes believed that the best method for tackling recessions was to reduce government spending and raise taxes,thereby reducing the federal budget deficit.

The aggregate demand curve slopes downward because households feel poorer after a decrease in the price level.

By a leading economic indicator,economists mean:​

Which of these is a coincident economic indicator?​

Which of the following describes an economy's price level?​

In combating stagflation,a government-induced:

Suppose an economy is initially in equilibrium and there is a sudden increase in oil prices.Which of the following is the most likely result?

For a given aggregate supply curve,an increase in aggregate demand will:​

Which of the following would indicate the beginning of an expansionary phase in an economy?​

The term stagflation refers to:

An investment bank is a financial institution that finances federal budget deficits at very low interest rates.

An economic variable that is measured per unit of time,such as spending per year,is known as a:

A federal policy that leads to an increase in aggregate supply is likely to result in:

One explanation for the slope of the aggregate demand curve is that:​

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that from the beginning of period 1 to the end of period 2:​ ​ Figure 5.1 ​

The aggregate demand curve reflects:​

In terms of the aggregate demand and aggregate supply framework,the Great Depression can be viewed as a:​

Which of the following can be concluded about the long-run performance of the U.S.economy?

An increase in wage rate,other things constant,shifts the aggregate supply curve downward.

A rise in the price level will:​