Exam 5: Introduction to Macroeconomics

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

If Juanita purchases a share of stock for $20 and three years later sells it for $120, she will realize a

A recession is usually associated with high inflation.

Macroeconomics

Javier purchased a 1972 Dodge Charger in 2011 for $17,000 and a year later he sold it for $21,000. Due to these transactions

Since 1970, the U.S. economy has experienced 2 recessions.

Unemployment generally ________ during recessions and ________ during expansions.

In a business cycle, the end of an expansion is represented by

Starting with the Great Depression, macroeconomic policies became more influenced by

If the labor force is 200 million and 4 million are unemployed then the employment rate is

If the labor force is 50 million and 48 million are employed then the unemployment rate is

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

Microeconomics is best described as the study of

A transfer payment is

The behavior of all households and firms together is known as

If Congress increases government spending, it is using

The period in the business cycle from a ________ to a ________ is called an expansion.

The government wants to discourage consumer spending through raising income taxes. This is an example of

Government policymakers would like to have high ________ and low ________.

According to ________ economists, the economy is self-correcting.