Question 1

How did Keynes propose to solve the problem of high unemployment?

Accepted Answer

A) Increase the growth rate of the money supply. 
B) Allow wages to decline,so that firms will want to hire more workers. 
C) Put on wage and price controls,so wages won't rise and firms won't have to lay people off to cut costs. 
D) Have the government increase its demand for goods and services. 
A) Increase the growth rate of the money supply. 
B) Allow wages to decline,so that firms will want to hire more workers. 
C) Put on wage and price controls,so wages won't rise and firms won't have to lay people off to cut costs. 
D) Have the government increase its demand for goods and services.

Question 2

The highest and most prolonged period of unemployment in the United States over the last 125 years occurred during

Accepted Answer

A) World War II. 
B) the 1890s Depression. 
C) the 1990-1991 recession. 
D) the Great Depression of the 1930s. 
A) World War II. 
B) the 1890s Depression. 
C) the 1990-1991 recession. 
D) the Great Depression of the 1930s.

Question 3

Many people perceive erroneously that most macroeconomists spend a lot of time engaged in

Accepted Answer

A) forecasting. 
B) macroeconomic research. 
C) macroeconomic analysis. 
D) data development. 
A) forecasting. 
B) macroeconomic research. 
C) macroeconomic analysis. 
D) data development.

Question 4

Classical economists argue that

Accepted Answer

A) the government should have an active role in the economy. 
B) government policies will be ineffective and counterproductive. 
C) the government should actively intervene in the economy to eliminate business cycles. 
D) wages and prices don't adjust quickly,so the economy is slow to return to equilibrium. 
A) the government should have an active role in the economy. 
B) government policies will be ineffective and counterproductive. 
C) the government should actively intervene in the economy to eliminate business cycles. 
D) wages and prices don't adjust quickly,so the economy is slow to return to equilibrium.

Question 5

Which of the following best describes a typical business cycle?

Accepted Answer

A) Economic expansions are followed by economic contractions. 
B) Inflation is followed by unemployment. 
C) Trade surpluses are followed by trade deficits. 
D) Stagflation is followed by inflationary economic growth. 
A) Economic expansions are followed by economic contractions. 
B) Inflation is followed by unemployment. 
C) Trade surpluses are followed by trade deficits. 
D) Stagflation is followed by inflationary economic growth.

Question 6

In which of the following periods did average labor productivity in the United States grow the fastest?

Accepted Answer

A) 1929 to 1935 
B) 1949 to 1973 
C) 1973 to 1995 
D) 1995 to 2008 
A) 1929 to 1935 
B) 1949 to 1973 
C) 1973 to 1995 
D) 1995 to 2008

Question 7

Keynes assumed that wages and prices were slow to adjust in order to explain

Accepted Answer

A) persistently high unemployment. 
B) high inflation. 
C) the high level of interest rates. 
D) why inflation fell in recessions. 
A) persistently high unemployment. 
B) high inflation. 
C) the high level of interest rates. 
D) why inflation fell in recessions.

How did Keynes propose to solve the problem of high unemployment?

The highest and most prolonged period of unemployment in the United States over the last 125 years occurred during

Many people perceive erroneously that most macroeconomists spend a lot of time engaged in

Classical economists argue that

Which of the following best describes a typical business cycle?

In which of the following periods did average labor productivity in the United States grow the fastest?

Keynes assumed that wages and prices were slow to adjust in order to explain

The Measurement and Structure of the National Economy

Productivity, Output, and Employment

Consumption, Saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, Money, and Prices

Business Cycles

The IS-LM/AD-AS Model

Classical Business Cycle Analysis

Keynesianism: The Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates,Business Cycles,and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

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Exam 1: Introduction to Macroeconomics

How did Keynes propose to solve the problem of high unemployment?

The highest and most prolonged period of unemployment in the United States over the last 125 years occurred during

Many people perceive erroneously that most macroeconomists spend a lot of time engaged in

Classical economists argue that

Which of the following best describes a typical business cycle?

In which of the following periods did average labor productivity in the United States grow the fastest?

Keynes assumed that wages and prices were slow to adjust in order to explain

The Measurement and Structure of the National Economy

Productivity, Output, and Employment

Consumption, Saving, and Investment

Saving and Investment in the Open Economy

Long-Run Economic Growth

The Asset Market, Money, and Prices

Business Cycles

The IS-LM/AD-AS Model

Classical Business Cycle Analysis

Keynesianism: The Macroeconomics of Wage and Price Rigidity

Unemployment and Inflation

Exchange Rates,Business Cycles,and Macroeconomic Policy in the Open Economy

Monetary Policy and the Federal Reserve System

Government Spending and Its Financing

Filters