Question 1

Which statement below best illustrates the "art," rather than the "science" of macroeconomics?

Accepted Answer

A)  Macroeconomic data provides the motivation for new macroeconomic theory. 
B)  Macroeconomic relationships can be expressed using symbols and equations. 
C)  Macroeconomists must determine which simplifying assumptions clarify our thinking and which mislead us. 
D)  Graphs and charts can be used to illustrate the history of macroeconomic variables. 
A)  Macroeconomic data provides the motivation for new macroeconomic theory. 
B)  Macroeconomic relationships can be expressed using symbols and equations. 
C)  Macroeconomists must determine which simplifying assumptions clarify our thinking and which mislead us. 
D)  Graphs and charts can be used to illustrate the history of macroeconomic variables.

Question 2

A graph of the rate of inflation in the United States over the twentieth century shows:

Accepted Answer

A)  an overall upward trend interrupted by a large downturn in the 1930s. 
B)  some periods of deflation in the first half of the century, but only positive rates of inflation in the second half of the century. 
C)  a relatively steady, positive level throughout the century except for deflation in the 1930s. 
D)  a constant rate of inflation in the first half of the century followed by an upward trend in the second half. 
A)  an overall upward trend interrupted by a large downturn in the 1930s. 
B)  some periods of deflation in the first half of the century, but only positive rates of inflation in the second half of the century. 
C)  a relatively steady, positive level throughout the century except for deflation in the 1930s. 
D)  a constant rate of inflation in the first half of the century followed by an upward trend in the second half.

Question 3

What is the difference between sticky prices and flexible prices? Explain.

Accepted Answer

With flexible prices, instantaneous adju

Question 4

Variables that a model takes as given are called:

Accepted Answer

A)  endogenous. 
B)  exogenous. 
C)  market clearing. 
D)  macroeconomic. 
A)  endogenous. 
B)  exogenous. 
C)  market clearing. 
D)  macroeconomic.

Question 5

In an economic model:

Accepted Answer

A)  exogenous variables and endogenous variables are both fixed when they enter the model. 
B)  endogenous variables and exogenous variables are both determined within the model. 
C)  endogenous variables affect exogenous variables. 
D)  exogenous variables affect endogenous variables. 
A)  exogenous variables and endogenous variables are both fixed when they enter the model. 
B)  endogenous variables and exogenous variables are both determined within the model. 
C)  endogenous variables affect exogenous variables. 
D)  exogenous variables affect endogenous variables.

Question 6

The inflation rate is a measure of how fast:

Accepted Answer

A)  the total income of the economy is growing. 
B)  unemployment in the economy is increasing. 
C)  the general level of prices in the economy is rising. 
D)  the number of jobs in the economy is expanding. 
A)  the total income of the economy is growing. 
B)  unemployment in the economy is increasing. 
C)  the general level of prices in the economy is rising. 
D)  the number of jobs in the economy is expanding.

Which statement below best illustrates the "art," rather than the "science" of macroeconomics?

A graph of the rate of inflation in the United States over the twentieth century shows:

What is the difference between sticky prices and flexible prices? Explain.

Variables that a model takes as given are called:

In an economic model:

The inflation rate is a measure of how fast:

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

Which statement below best illustrates the "art," rather than the "science" of macroeconomics?

A graph of the rate of inflation in the United States over the twentieth century shows:

What is the difference between sticky prices and flexible prices? Explain.

Variables that a model takes as given are called:

In an economic model:

The inflation rate is a measure of how fast:

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