Question 1

In a simple model of the supply and demand for pizza, when aggregate income increases, the price of pizza ______ and the quantity purchased ______.

Accepted Answer

A)  increases; decreases 
B)  increases; increases 
C)  decreases; increases 
D)  decreases; decreases 
A)  increases; decreases 
B)  increases; increases 
C)  decreases; increases 
D)  decreases; decreases

Question 2

The quantity of coffee demanded, QD, depends on the price of coffee, Pc, and the price of tea, PT. The quantity of coffee supplied, QS, depends on the price of coffee, Pc, and the price of electricity, PE , according to the following equation: $$\begin{array} { l } 
Q ^ { D } = 17 - 2 P _ { \mathrm { c } } + 10 P _ { \mathrm { T } } \
Q ^ { \mathrm { S } } = 2 + 3 P _ { \mathrm { c } } - 5 P _ { \mathrm { E } }
\end{array}$$
a. If the price of teais $\$ 1.00$ and the price of electricity is $\$ 0.50$, what is the equilibrium price and quantity of coffee?
b. What is/are the endogenous variable(s) in this model?
c. What is/are the exogenous variable(s) in this model?

Accepted Answer

a. The equilibrium p

Question 3

The inflation rate in the United States averaged about:

Accepted Answer

A)  nearly zero between 1900 and 1950. 
B)  nearly zero between 1950 and 2000. 
C)  10 percent between 1900 and 1950. 
D)  10 percent between 1950 and 2000. 
A)  nearly zero between 1900 and 1950. 
B)  nearly zero between 1950 and 2000. 
C)  10 percent between 1900 and 1950. 
D)  10 percent between 1950 and 2000.

Question 4

Give two examples of macroeconomic variables and microeconomic variables.

Accepted Answer

The income of your father is a microecon

Question 5

Assume that the equation for demand for bread at a small bakery is Qd = 60 - 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves and Y is the average income in the town in thousands of dollars. a. If the average income in the town is 10 , state the equation for $Q ^ { \mathrm { d } }$ in terms of $P _ { \mathrm { b } }$.
b. Draw a graph of the demand curve with $Q ^ { \mathrm { d } }$ on the horizontal axis and $P _ { \mathrm { b } }$ on the vertical axis. Label the curve DD.

Accepted Answer

Question 6

Assume that the equation for demand for bread at a small bakery is Qd = 60 - 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves, Pb is the price of bread in dollars per loaf, and Y is the average income in the town in thousands of dollars. Assume also that the equation for supply of bread is Qs = 30 + 20Pb - 30 Pf, where Qs is the quantity supplied and Pf is the price of flour in dollars per pound. Assume finally that markets clear, so that Qd = Qs. a. If $Y$ is 10 and $P _ { \mathrm { f } }$ is $\$ 1$, solve mathematically for equilibrium $Q$ and $P _ { \mathrm { b } }$.
b. If the average income in the town increases to 15 , solve for the new equilibrium $Q$ and $P _ { \mathrm { b } }$.

Accepted Answer

a. @#LAT-DLM& loaves

Question 7

Exogenous variables are:

Accepted Answer

A)  fixed at the moment they enter the model. 
B)  determined within the model. 
C)  the outputs of the model. 
D)  explained by the model. 
A)  fixed at the moment they enter the model. 
B)  determined within the model. 
C)  the outputs of the model. 
D)  explained by the model.

Question 8

In the U.S. economy today, real GDP per person, compared with its level in 1900, is about:

Accepted Answer

A)  50 percent higher. 
B)  twice as high. 
C)  three times as high. 
D)  eight times as high. 
A)  50 percent higher. 
B)  twice as high. 
C)  three times as high. 
D)  eight times as high.

Question 9

Use the following to answer question :  
-Refer to the following graph and identify the years for which Country A and Country B experienced recession.

Accepted Answer

Country A experienced its recession duri

Question 10

Endogenous variables are:

Accepted Answer

A)  fixed at the moment they enter the model. 
B)  determined within the model. 
C)  the inputs of the model. 
D)  from outside the model. 
A)  fixed at the moment they enter the model. 
B)  determined within the model. 
C)  the inputs of the model. 
D)  from outside the model.

Question 11

Compared with a recession, real GDP during a depression:

Accepted Answer

A)  increases more rapidly. 
B)  increases at approximately the same rate. 
C)  decreases at approximately the same rate. 
D)  decreases more severely. 
A)  increases more rapidly. 
B)  increases at approximately the same rate. 
C)  decreases at approximately the same rate. 
D)  decreases more severely.

Question 12

Which of the following statements about economic models is true?

Accepted Answer

A)  There is only one correct economic model. 
B)  All economic models are based on the same assumptions. 
C)  The purpose of economic models is to show how endogenous variables affect exogenous variables. 
D)  Economists use different models to address different economic phenomenon. 
A)  There is only one correct economic model. 
B)  All economic models are based on the same assumptions. 
C)  The purpose of economic models is to show how endogenous variables affect exogenous variables. 
D)  Economists use different models to address different economic phenomenon.

Question 13

Macroeconomic models are used to explain how ______ variables influence ______ variables.

Accepted Answer

A)  endogenous; exogenous 
B)  exogenous; endogenous 
C)  microeconomic; macroeconomic 
D)  macroeconomic; microeconomic 
A)  endogenous; exogenous 
B)  exogenous; endogenous 
C)  microeconomic; macroeconomic 
D)  macroeconomic; microeconomic

Question 14

The production function for an economy can be expressed as Y = F(K,L), where Y is real GDP, K is the quantity of capital in the economy, and L is the quantity of labor in the economy. a. If $F ( ) = 100 + 3 K + 9 L$, what is real GDP if the quantity of capital is 200 and the quantity of lab or is $500 ?$
b. What is/are the endogenous variable(s) in this model?
c. What is/are the exogenous variable(s) in this model?

Accepted Answer

The answer of The production function for an economy can...

Question 15

Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the:

Accepted Answer

A)  overall upward trend interrupted by a large downturn due to the economic depression in the 1930s. 
B)  nearly constant level with a large downturn in the 1930s. 
C)  downward trend in the first half of the century followed by the upward trend in the second half. 
D)  constant level in the first half of the century followed by the upward trend in the second half. 
A)  overall upward trend interrupted by a large downturn due to the economic depression in the 1930s. 
B)  nearly constant level with a large downturn in the 1930s. 
C)  downward trend in the first half of the century followed by the upward trend in the second half. 
D)  constant level in the first half of the century followed by the upward trend in the second half.

Question 16

A typical trend during a recession is that:

Accepted Answer

A)  the unemployment rate falls. 
B)  the popularity of the incumbent president rises. 
C)  incomes fall. 
D)  the inflation rate rises. 
A)  the unemployment rate falls. 
B)  the popularity of the incumbent president rises. 
C)  incomes fall. 
D)  the inflation rate rises.

Question 17

A measure of how fast the general level of prices is rising is called the:

Accepted Answer

A)  growth rate of real GDP. 
B)  inflation rate. 
C)  unemployment rate. 
D)  market-clearing rate. 
A)  growth rate of real GDP. 
B)  inflation rate. 
C)  unemployment rate. 
D)  market-clearing rate.

Question 18

Refer the following table showing the quantity of toothpastes that are demanded at different prices. Identify the price (as shown in the first column below in the table) that represents the market clearing. $$\begin{array} { c c c } 
\begin{array} { c } 
\text { Price } \
\text { (US\$/tube) }
\end{array} & \begin{array} { c } 
\text { Quantity demanded } \
\text { (thousands of tubes) }
\end{array} & \begin{array} { c } 
\text { Quantity supplied } \
\text { (thousands of tubes) }
\end{array} \
20 & 5 & 20 \
16 & 8 & 16 \
13 & 12 & 12 \
8 & 15 & 8 \
5 & 17 & 5 \
4 & 18 & 3
\end{array}$$

Accepted Answer

US$13 per

Question 19

Important characteristics of macroeconomic models include all of the following except:

Accepted Answer

A)  simplifying assumptions. 
B)  functional relationships based on controlled experiments. 
C)  endogenous and exogenous variables. 
D)  implicit or explicit consistency with microeconomic foundations. 
A)  simplifying assumptions. 
B)  functional relationships based on controlled experiments. 
C)  endogenous and exogenous variables. 
D)  implicit or explicit consistency with microeconomic foundations.

Question 20

Macroeconomics does not try to answer the question of:

Accepted Answer

A)  why do some countries experience rapid growth. 
B)  what is the rate of return on education. 
C)  why do some countries have high rates of inflation. 
D)  what causes recessions and depressions. 
A)  why do some countries experience rapid growth. 
B)  what is the rate of return on education. 
C)  why do some countries have high rates of inflation. 
D)  what causes recessions and depressions.

In a simple model of the supply and demand for pizza, when aggregate income increases, the price of pizza and the quantity purchased .

The inflation rate in the United States averaged about:

Give two examples of macroeconomic variables and microeconomic variables.

Exogenous variables are:

In the U.S. economy today, real GDP per person, compared with its level in 1900, is about:

Use the following to answer question : -Refer to the following graph and identify the years for which Country A and Country B experienced recession.

Endogenous variables are:

Compared with a recession, real GDP during a depression:

Which of the following statements about economic models is true?

Macroeconomic models are used to explain how variables influence variables.

Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the:

A typical trend during a recession is that:

A measure of how fast the general level of prices is rising is called the:

Important characteristics of macroeconomic models include all of the following except:

Macroeconomics does not try to answer the question of:

The Data of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labor Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

Exam 1: The Science of Macroeconomics

In a simple model of the supply and demand for pizza, when aggregate income increases, the price of pizza ______ and the quantity purchased ______.

The inflation rate in the United States averaged about:

Give two examples of macroeconomic variables and microeconomic variables.

Exogenous variables are:

In the U.S. economy today, real GDP per person, compared with its level in 1900, is about:

Use the following to answer question : -Refer to the following graph and identify the years for which Country A and Country B experienced recession.

Endogenous variables are:

Compared with a recession, real GDP during a depression:

Which of the following statements about economic models is true?

Macroeconomic models are used to explain how ______ variables influence ______ variables.

Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the:

A typical trend during a recession is that:

A measure of how fast the general level of prices is rising is called the:

Important characteristics of macroeconomic models include all of the following except:

Macroeconomics does not try to answer the question of:

The Data of Macroeconomics

National Income: Where It Comes From and Where It Goes

The Monetary System: What It Is and How It Works

Inflation: Its Causes, Effects, and Social Costs

The Open Economy

Unemployment and the Labor Market

Economic Growth I: Capital Accumulation and Population Growth

Economic Growth II: Technology, Empirics, and Policy

Introduction to Economic Fluctuations

Aggregate Demand I: Building the Is-Lm Model

Aggregate Demand Ii: Applying the Is-Lm Model

The Open Economy Revisited: the Mundell-Fleming Model and the Exchange-Rate Regime

Aggregate Supply and the Short-Run Tradeoff Between Inflation and Unemployment

A Dynamic Model of Economic Fluctuations

Understanding Consumer Behavior

The Theory of Investment

Alternative Perspectives on Stabilization Policy

Government Debt and Budget Deficits

The Financial System: Opportunities and Dangers

Filters

In a simple model of the supply and demand for pizza, when aggregate income increases, the price of pizza and the quantity purchased .

Macroeconomic models are used to explain how variables influence variables.