Question 1

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

Accepted Answer

A)  (1) document the facts; (2) develop a model; (3) compare the predictions of the model to the original facts; and (4) use the model to make other predictions that may eventually be tested 
B)  (1) document the facts; (2) use the model to make other predictions that may eventually be tested; (3) compare the predictions of the model to the original facts; and (4) develop a model 
C)  (1) compare the predictions of the model to the original facts; (2) develop a model; (3) document the facts; and (4) use the model to make other predictions that may eventually be tested 
D)  (1) develop a model; (2) document the facts; (3) compare the predictions of the model to the original facts; and (4) use the model to make other predictions that may eventually be tested 
E)  None of these answers is correct. 
A)  (1) document the facts; (2) develop a model; (3) compare the predictions of the model to the original facts; and (4) use the model to make other predictions that may eventually be tested 
B)  (1) document the facts; (2) use the model to make other predictions that may eventually be tested; (3) compare the predictions of the model to the original facts; and (4) develop a model 
C)  (1) compare the predictions of the model to the original facts; (2) develop a model; (3) document the facts; and (4) use the model to make other predictions that may eventually be tested 
D)  (1) develop a model; (2) document the facts; (3) compare the predictions of the model to the original facts; and (4) use the model to make other predictions that may eventually be tested 
E)  None of these answers is correct.

Question 2

A main concern of short-run macroeconomics is the causes of economic growth.

Accepted Answer

A) True 
 B)False

Question 3

An exogenous variable is one that is taken as given (what the text refers to as parameters).

Accepted Answer

A) True 
 B)False

Question 4

Actual gross domestic product (GDP) is ________ equal to potential GDP.

Accepted Answer

A)  rarely not 
B)  always 
C)  always not 
D)  rarely 
E)  Not enough information is given. 
A)  rarely not 
B)  always 
C)  always not 
D)  rarely 
E)  Not enough information is given.

Question 5

A central topic of study in macroeconomics is ________, while a central topic of study in microeconomics is ________.

Accepted Answer

A)  the cosmos; particle physics 
B)  the overall performance of an economy; an individual market 
C)  an individual market; the overall performance of an economy 
D)  the overall performance of a single economy; the individual firm 
E)  consumer behavior; firm behavior 
A)  the cosmos; particle physics 
B)  the overall performance of an economy; an individual market 
C)  an individual market; the overall performance of an economy 
D)  the overall performance of a single economy; the individual firm 
E)  consumer behavior; firm behavior

Question 6

The three main variables we discuss in the short run are:

Accepted Answer

A)  economic fluctuations, interest rates, and unemployment. 
B)  economic fluctuations, inflation, and money. 
C)  economic fluctuations, inflation, and unemployment. 
D)  interest rates, money supply, and taxes. 
E)  economic fluctuations, interest rates, and money. 
A)  economic fluctuations, interest rates, and unemployment. 
B)  economic fluctuations, inflation, and money. 
C)  economic fluctuations, inflation, and unemployment. 
D)  interest rates, money supply, and taxes. 
E)  economic fluctuations, interest rates, and money.

Question 7

Income per person began at ________ in 1870 and ________ over a factor of 15 to ________ in 2012.

Accepted Answer

A)  $2,500; rose; $35,000 
B)  $2,800; rose; $58,000 
C)  $2,800; rose; $100,000 
D)  $44,000; fell; $3,500 
E)  $40,000; fell; $2,500 
A)  $2,500; rose; $35,000 
B)  $2,800; rose; $58,000 
C)  $2,800; rose; $100,000 
D)  $44,000; fell; $3,500 
E)  $40,000; fell; $2,500

Question 8

Which of the following does macroeconomics endeavor to answer?
i. What role does the government play in recessions, booms, and determining the rate of inflation?
ii. What caused the currency crises in Mexico in the mid-1990s and in many Asian economies at the end of the 1990s?
iii. How does a dairy farmer react to rising milk prices?

Accepted Answer

A)  iii only 
B)  ii only 
C)  i and ii 
D)  i, ii, and iii 
E)  i and iii 
A)  iii only 
B)  ii only 
C)  i and ii 
D)  i, ii, and iii 
E)  i and iii

Question 9

Consider the following model of the labor market:
Labor supply:  
Labor demand:  
The values of the equilibrium quantity of labor, L, and wage, w, are:

Accepted Answer

A)    . 
B)    . 
C)    . 
D)    . 
E)    . 
A)    . 
B)    . 
C)    . 
D)    . 
E)    .

Question 10

Which of the following questions should a successful model predict?
i. Why, in general, do Americans have higher incomes than Africans?
ii. How much less unemployment is there during an economic expansion?
iii. Why does the United States have a lower unemployment rate than Europe?

Accepted Answer

A)  i and ii 
B)  ii only 
C)  iii only 
D)  i, ii, and iii 
E)  i and iii 
A)  i and ii 
B)  ii only 
C)  iii only 
D)  i, ii, and iii 
E)  i and iii

Question 11

A main concern of long-run macroeconomics is the causes of economic growth.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following does macroeconomics endeavor to answer?
i. What role does the government play in recessions, booms, and determining the rate of inflation?
ii. What causes an increase in the price of Exxon stock?
iii. How does a dairy farmer react to rising milk prices?

Accepted Answer

A)  i only 
B)  ii only 
C)  iii only 
D)  i, ii, and iii 
E)  ii and iii 
A)  i only 
B)  ii only 
C)  iii only 
D)  i, ii, and iii 
E)  ii and iii

Question 13

An endogenous variable is often called a parameter.

Accepted Answer

A) True 
 B)False

Question 14

What are the steps macroeconomists use to analyze the economy?

Accepted Answer

(a) Document the facts;
(b) Develop a fr

Question 15

Macroeconomics is the study of an individual market.

Accepted Answer

A) True 
 B)False

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

A main concern of short-run macroeconomics is the causes of economic growth.

An exogenous variable is one that is taken as given (what the text refers to as parameters).

Actual gross domestic product (GDP) is ________ equal to potential GDP.

A central topic of study in macroeconomics is , while a central topic of study in microeconomics is .

The three main variables we discuss in the short run are:

Income per person began at in 1870 and over a factor of 15 to in 2012.

Consider the following model of the labor market: Labor supply: Labor demand: The values of the equilibrium quantity of labor, L, and wage, w, are:

Which of the following questions should a successful model predict? i. Why, in general, do Americans have higher incomes than Africans? ii. How much less unemployment is there during an economic expansion? iii. Why does the United States have a lower unemployment rate than Europe?

A main concern of long-run macroeconomics is the causes of economic growth.

Which of the following does macroeconomics endeavor to answer? i. What role does the government play in recessions, booms, and determining the rate of inflation? ii. What causes an increase in the price of Exxon stock? iii. How does a dairy farmer react to rising milk prices?

An endogenous variable is often called a parameter.

What are the steps macroeconomists use to analyze the economy?

Macroeconomics is the study of an individual market.

Measuring the Macroeconomy

An Overview of Long-Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

Exam 1: Introduction to Macroeconomics

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

A main concern of short-run macroeconomics is the causes of economic growth.

An exogenous variable is one that is taken as given (what the text refers to as parameters).

Actual gross domestic product (GDP) is ________ equal to potential GDP.

A central topic of study in macroeconomics is ________, while a central topic of study in microeconomics is ________.

The three main variables we discuss in the short run are:

Income per person began at ________ in 1870 and ________ over a factor of 15 to ________ in 2012.

Consider the following model of the labor market: Labor supply: Labor demand: The values of the equilibrium quantity of labor, L, and wage, w, are:

Which of the following questions should a successful model predict? i. Why, in general, do Americans have higher incomes than Africans? ii. How much less unemployment is there during an economic expansion? iii. Why does the United States have a lower unemployment rate than Europe?

A main concern of long-run macroeconomics is the causes of economic growth.

Which of the following does macroeconomics endeavor to answer? i. What role does the government play in recessions, booms, and determining the rate of inflation? ii. What causes an increase in the price of Exxon stock? iii. How does a dairy farmer react to rising milk prices?

An endogenous variable is often called a parameter.

What are the steps macroeconomists use to analyze the economy?

Macroeconomics is the study of an individual market.

Measuring the Macroeconomy

An Overview of Long-Run Economic Growth

A Model of Production

The Solow Growth Model

Growth and Ideas

The Labor Market, Wages, and Unemployment

Inflation

An Introduction to the Short Run

The Great Recession: a First Look

The Is Curve

Monetary Policy and the Phillips Curve

Stabilization Policy and the Asad Framework

The Great Recession and the Short-Run Model

Dsge Models: the Frontier of Business Cycle Research

Consumption

Investment

The Government and the Macroeconomy

International Trade

Exchange Rates and International Finance

Parting Thoughts

Filters

A central topic of study in macroeconomics is , while a central topic of study in microeconomics is .

Income per person began at in 1870 and over a factor of 15 to in 2012.