Exam 5: Introduction to Macroeconomics

In the circular flow diagram,the different payments made by firms to households include

Macroeconomic policies became more influenced by Keynes' theories starting with,

If Tomas purchases a share of stock for $150 and one year later sells it for $225,he will realize a

An example of a transfer payment is

The employment rate is the number of people employed divided by number of people in the labor force.

Refer to the information for this hypothetical economy provided in Table 5.1 below to answer the questions that follow. Table 5.1 2010 2011 2012 -Refer to Table 5.1.Which of the following quarters can be associated with inflation?

The demand for massage therapists declined in the spring of 2012,but the starting wages paid to massage therapists was still the same at the end of 2012.This is an example of a

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

If Congress increases government spending,it is using

A dividend is paid by shareholders to firms.

The unemployment rate equals

In the Classical model,the level of employment is determined by the level of aggregate demand.

Unemployment implies that in the labor market

Macroeconomics is concerned with the market price and equilibrium quantity of each good or service.

Fiscal policy generally takes the form of regulations specifying the maximum amount by which the money supply can be changed.

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

The government implements fiscal policy when it changes

An expansion is usually associated with rising price levels.

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

The following is a correct order in a business cycle: recession,trough,peak,expansion.