Exam 5: Introduction to Macroeconomics

Rapid ________ in prices during periods of ________ is known as stagflation.

A contraction is associated with a negative rate of growth of the economy.

According to Keynes, the level of employment is determined by

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

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

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

A transfer payment is the tax one pays when transferring real estate.

A period during which aggregate output falls is known as a(n)

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

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

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

A dividend is is paid by shareholders to firms.

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

If Teresa purchases a share of stock for $15 and three years later sells it for $60, she will realize a

In the goods-and-services market, ________ only demand(s).

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

All business cycles are asymmetric-the length of an expansion is not necessarily the same as the length of a recession.

Since 1970, the U.S. economy has experienced ________ recession(s).

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

"Fine tuning" is any government attempt to regulate inflation or unemployment.