Exam 6: Introduction to Macroeconomics

Which of the following best describes a stock (rather than a flow)?

Economic fluctuations

The largest and most complex economy in world history is

Gross Domestic Product measures the value of all final goods and services produced within a nation's borders.

The global financial panic in September 2008 which led to a sharp fall in business investment spending and consumer spending can be viewed as

Inflation is

Given an aggregate supply curve that slopes upward, an increase in aggregate demand would decrease real GDP.

The aggregate supply curve has

Long-term growth in production can be partially explained by

A recession is best defined as a period during which

Properly applied, a federal budget deficit can simultaneously reduce inflation and unemployment.

A period of sustained decline of output in the economy is known as a(n)

The aggregate demand curve reflects the direct relationship between the price level and the quantity of aggregate output demanded.

The aggregate supply curve reflects the direct relationship between the price level and the quantity of aggregate output supplied.

If the economy were initially in equilibrium and the aggregate demand curve shifted to the left,

Stagflation is a situation with high unemployment rates, high inflation rates, and little or no growth in the economy.

Suppliers have an incentive to increase aggregate output whenever the price level rises faster than the cost of production.

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

Economic strength overseas can give the U.S. economy a lift.

A depression can be defined as