Exam 5: Introduction to Macroeconomics

A decrease in the overall price level is known as

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

Eddie purchased an autographed Kobe Bryant basketball when he was 17 years old for a total cost of $200 and then sold the basketball 4 years later for $700. Due to these transactions

The diagram that shows the income received and payments made by each sector of the economy is the

A recession is usually associated with increasing unemployment.

During the U.S. recession of 1980-1982, the unemployment rate reached a high of ________ percent.

In the United States in 1929, ________ people were unemployed.

Households purchase stocks and bonds from firms in the ________ market.

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

Since 1994, the average annual inflation rate in the U.S. has been greater than 8 percent.

The trend of the economy is

Compared to the period after World War II, business cycles in the United States before World War II were

Refer to the information for this hypothetical economy provided in Table 5.2 below to answer the questions that follow. Table 5.2 2014 2015 2016 -Refer to Table 5.2. Which of the following quarters would we most expect to be associated with high unemployment?

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

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

Corporate profits distributed among shareholders are called

Which of the following is not a topic studied in Macroeconomics?

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

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

In the circular flow diagram, the different payments made by ________ to ________ include wages, rent and profits.