Question 1

An exogenous variable is one that is taken as given,that is,a parameter.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following questions should a successful model predict?
i.How do changes in government policies change the labor market?
ii.How does money supply influence inflation?
iii.What is the relationship between inflation and unemployment?

Accepted Answer

A) iii only 
B) ii only 
C) i,ii,and iii 
D) i and ii 
E) i and iii 
A) iii only 
B) ii only 
C) i,ii,and iii 
D) i and ii 
E) i and iii C

Question 3

What are the steps macroeconomists use to analyze the economy?

Accepted Answer

a)Document the problem,identify and ask the question;
b)Develop a framework for analysis,a model;
c)Test the model using empirical analysis orsome other comparable analysis and compareto the observed facts;
d)Apply the model to similar situations and makenother predictions.

Question 4

__________ variables are parameters to the model and generally are fixed over time,while __________ variables are the outcome of the model.

Accepted Answer

A) Shocks;parameters 
B) Endogenous;exogenous 
C) Endogenous;shocks 
D) Exogenous;endogenous 
E) Parameters;system 
A) Shocks;parameters 
B) Endogenous;exogenous 
C) Endogenous;shocks 
D) Exogenous;endogenous 
E) Parameters;system

Question 5

Macroeconomics is the study of an individual market.

Accepted Answer

A) True 
 B)False

Question 6

Consider the following model of the labor market:
Labor supply:  
Labor demand:  
)
The value of the equilibrium quantity of labor,L,and wage,w,are:

Accepted Answer

A)    ;   . 
B) L* = 5;w* = 6. 
C) L* = 6;w* = 5. 
D) L* = 6;w* = 6. 
E) Not enough information is given. 
A)    ;   . 
B) L* = 5;w* = 6. 
C) L* = 6;w* = 5. 
D) L* = 6;w* = 6. 
E) Not enough information is given.

Question 7

An endogenous variable is often called a parameter.

Accepted Answer

A) True 
 B)False

Question 8

Macroeconomic is to microeconomic what __________ is to __________.

Accepted Answer

A) cosmology;particle physics 
B) particle physics;cosmology 
C) physics;biology 
D) chemistry;organic chemistry 
E) biology;zoology 
A) cosmology;particle physics 
B) particle physics;cosmology 
C) physics;biology 
D) chemistry;organic chemistry 
E) biology;zoology

Question 9

Consider the following model of the labor market:
Labor Supply:   
Labor Demand:   
i.Identify the model's parameters.
ii.Identify the exogenous variables.
iii.Solve the model.
iv.In the labor supply equation,if the "1" increases to some constant   
,what would happen to the equilibrium wage and equilibrium labor?

Accepted Answer

i.Using the notation in the text, @#IMG-DLM& ,and

Question 10

In the short run,we are concerned with the causes of economic growth.

Accepted Answer

A) True 
 B)False

Question 11

When we look at the __________ we are concerned with the __________.

Accepted Answer

A) short run;causes of economic fluctuations 
B) long run;causes of economic fluctuations 
C) short run;determinants of economic growth 
D) long run;causes of inflation 
E) long run;money supply 
A) short run;causes of economic fluctuations 
B) long run;causes of economic fluctuations 
C) short run;determinants of economic growth 
D) long run;causes of inflation 
E) long run;money supply

Question 12

An economic model is an exact replica of the macroeconomy.

Accepted Answer

A) True 
 B)False

Question 13

Consider the following model of the labor market:
Labor supply:  
Labor demand:  
The endogenous variables are

Accepted Answer

A)    and   . 
B)    and the equilibrium wage,w. 
C)    and the equilibrium wage,w. 
D) the equilibrium quantity of labor,L,and wage,w. 
E)    and the equilibrium quantity of labor,L. 
A)    and   . 
B)    and the equilibrium wage,w. 
C)    and the equilibrium wage,w. 
D) the equilibrium quantity of labor,L,and wage,w. 
E)    and the equilibrium quantity of labor,L.

Question 14

The three main variables we discuss in the short run are:

Accepted Answer

A) economic fluctuations;interest rates;unemployment. 
B) economic fluctuations;inflation;money. 
C) economic fluctuations;inflation;unemployment. 
D) interest rates;money supply;taxes. 
E) economic fluctuations;interest rates;money. 
A) economic fluctuations;interest rates;unemployment. 
B) economic fluctuations;inflation;money. 
C) economic fluctuations;inflation;unemployment. 
D) interest rates;money supply;taxes. 
E) economic fluctuations;interest rates;money.

Question 15

Which of the following does macroeconomics endeavor to answer?
i.Why is the typical person in the United States today more than ten times richer than the typical person a century ago?
ii.Why has the unemployment rate been nearly twice as high in Europe as in the United States in recent years?
iii.What determines the rate of inflation? What determines how rapidly the overall price level in an economy is increasing?

Accepted Answer

A) i only 
B) i,ii,and iii 
C) ii only 
D) i and ii 
E) ii and iii 
A) i only 
B) i,ii,and iii 
C) ii only 
D) i and ii 
E) ii and iii

Question 16

Which of the following questions should a successful model predict?
i.How do changes in government policies change the labor market?
ii.How does money supply influence inflation?
iii.How does investment affect economic growth?

Accepted Answer

A) ii only 
B) i,ii,and iii 
C) iii only 
D) i and ii 
E) i and iii 
A) ii only 
B) i,ii,and iii 
C) iii only 
D) i and ii 
E) i and iii

Question 17

What are at least four of the main concerns of the study of macroeconomics?

Accepted Answer

a)Why does the average person today have

Question 18

Which of the following does macroeconomics endeavor to answer?
i.What role does the government play in recessions and booms and in determining the rate of inflation?
ii.What causes an increase in the price of Exxon stock?
iii.How does a dairy farmer react to rising milk prices?

Accepted Answer

A) i only 
B) ii only 
C) iii only 
D) i,ii,and iii 
E) ii and iii 
A) i only 
B) ii only 
C) iii only 
D) i,ii,and iii 
E) ii and iii

Question 19

Actual GDP is __________ to potential GDP.

Accepted Answer

A) rarely not equal 
B) always equal 
C) always not equal 
D) rarely equal 
E) Not enough information is given. 
A) rarely not equal 
B) always equal 
C) always not equal 
D) rarely equal 
E) Not enough information is given.

Question 20

The four steps,and in the following order,are used to study macroeconomic behavior: (1)document the facts; (2)develop a model; (3)compare the predictions of the model to the original facts; (4)use the model to make other predictions that eventually may be tested.

Accepted Answer

A) True 
 B)False

An exogenous variable is one that is taken as given,that is,a parameter.

Which of the following questions should a successful model predict? i.How do changes in government policies change the labor market? ii.How does money supply influence inflation? iii.What is the relationship between inflation and unemployment?

What are the steps macroeconomists use to analyze the economy?

variables are parameters to the model and generally are fixed over time,while variables are the outcome of the model.

Macroeconomics is the study of an individual market.

Consider the following model of the labor market: Labor supply: Labor demand: ) The value of the equilibrium quantity of labor,L,and wage,w,are:

An endogenous variable is often called a parameter.

Macroeconomic is to microeconomic what is to .

In the short run,we are concerned with the causes of economic growth.

When we look at the we are concerned with the .

An economic model is an exact replica of the macroeconomy.

Consider the following model of the labor market: Labor supply: Labor demand: The endogenous variables are

The three main variables we discuss in the short run are:

Which of the following questions should a successful model predict? i.How do changes in government policies change the labor market? ii.How does money supply influence inflation? iii.How does investment affect economic growth?

What are at least four of the main concerns of the study of macroeconomics?

Which of the following does macroeconomics endeavor to answer? i.What role does the government play in recessions and booms and in determining the rate of inflation? ii.What causes an increase in the price of Exxon stock? iii.How does a dairy farmer react to rising milk prices?

Actual GDP is __________ to potential GDP.

The four steps,and in the following order,are used to study macroeconomic behavior: (1)document the facts; (2)develop a model; (3)compare the predictions of the model to the original facts; (4)use the model to make other predictions that eventually may be tested.

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 1: Introduction to Macroeconomics

An exogenous variable is one that is taken as given,that is,a parameter.

Which of the following questions should a successful model predict? i.How do changes in government policies change the labor market? ii.How does money supply influence inflation? iii.What is the relationship between inflation and unemployment?

What are the steps macroeconomists use to analyze the economy?

__________ variables are parameters to the model and generally are fixed over time,while __________ variables are the outcome of the model.

Macroeconomics is the study of an individual market.

Consider the following model of the labor market: Labor supply: Labor demand: ) The value of the equilibrium quantity of labor,L,and wage,w,are:

An endogenous variable is often called a parameter.

Macroeconomic is to microeconomic what __________ is to __________.

In the short run,we are concerned with the causes of economic growth.

When we look at the __________ we are concerned with the __________.

An economic model is an exact replica of the macroeconomy.

Consider the following model of the labor market: Labor supply: Labor demand: The endogenous variables are

The three main variables we discuss in the short run are:

Which of the following questions should a successful model predict? i.How do changes in government policies change the labor market? ii.How does money supply influence inflation? iii.How does investment affect economic growth?

What are at least four of the main concerns of the study of macroeconomics?

Which of the following does macroeconomics endeavor to answer? i.What role does the government play in recessions and booms and in determining the rate of inflation? ii.What causes an increase in the price of Exxon stock? iii.How does a dairy farmer react to rising milk prices?

Actual GDP is __________ to potential GDP.

The four steps,and in the following order,are used to study macroeconomic behavior: (1)document the facts; (2)develop a model; (3)compare the predictions of the model to the original facts; (4)use the model to make other predictions that eventually may be tested.

Measuring the Macroeconomy

An Overview of Long- Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market,wages,and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

variables are parameters to the model and generally are fixed over time,while variables are the outcome of the model.

Macroeconomic is to microeconomic what is to .

When we look at the we are concerned with the .