Exam 5: Introduction to Macroeconomics

A capital gain is

A transfer payment is

In which of the following markets are funds demanded and supplied?

A prolonged and deep recession is called

Unemployment means that

A period of very rapid increase in the overall price level is known as

The concept of "market clearing" is adopted and defended by

In a business cycle,a peak represents the end of

In the circular flow diagram everyone's expenditure is someone else's receipt.

If output is rising and unemployment is falling,the economy MUST be in a(n)

In the goods-and-services market,households

According to Classical economists,if the quantity of labor demanded exceeds the quantity supplied,there is a

Since 1970,the U.S.economy has experienced five

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?

Between a trough and a peak,the economy goes through a(n)

According to the Classical model,an excess supply of labor would drive up wages to a new equilibrium level and therefore unemployment would not persist.

The term business cycle refers to the

Macroeconomics is concerned with inflation or deflation,output growth and unemployment.

A period when the economy shrinks is known as

Related to the Economics in Practice on p.417: F.Scott Fitzgerald's The Great Gatsby is set in the "Roaring '20s." This decade in U.S.history was characterized by