Exam 5: Introduction to Macroeconomics

Since 1970,the U.S.economy has experienced 2 periods of high inflation.

A dividend is paid by shareholders to firms.

Which of the following is a CORRECT statement?

To bring the economy out of an inflationary period,Keynes argued that the government should

Rapid increases in the price level during periods of recession or high unemployment are known as

Macroeconomic behavior is the sum of all the microeconomic decisions made by individual households and firms.

Which of the following is a topic studied in Macroeconomics?

A transfer payment is

Hyperinflation and stagflation are two different names which refer to identical economic conditions.

An increase in the value of an asset over the price initially paid for it is a

A capital gain is the increase in value of an asset above its initial cost.

The major lesson of the circular flow diagram is that

The unemployment rate equals

Classical economists believed that economic slowdowns are self-correcting.

Inflation is a(n)

Suppose the economy suffers a high rate of unemployment.According to Keynesian economists,the government should increase employment by

In a business cycle,a peak represents the end of ________ and a trough represents the end of ________.

Promissory notes issued by the federal government when it borrows money are known as

Ami purchased 100 shares of stock for $10,000.A year later the stock is valued at $18,000.Instead of selling the stock,Ami held onto it for another year.Which of the following is TRUE?

Which of the following would be an example of fine tuning?