Exam 5: Are Your Smart Choices Smart for All Macroeconomics and Microeconomics

In the icon for "Yes - Markets Self-Adjust," the hands of government hold the broken connections between input markets and output markets.

The hands-off camp believes that government failure is worse than market failure.

The hands-on camp believes that markets do not quickly self-adjust.

The "Yes, Markets Self-Adjust" camp focuses on short-run business cycles, while the "No, Markets Fail Often" camp focuses on long-run growth.

When unemployment is low,

Thinking like a macroeconomist means focusing on the connections between

Incomes are determined in output markets.

The effects of the Great Depression lasted over 10 years.

The group of macroeconomic players that makes the most choices about spending on Canadian exports is

In the icon for "No - Markets Fail Often," the hands of government hold the broken connections between input markets and output markets.

Thinking like a macroeconomist means focusing on connections between competition and cooperation.

Macroeconomics focuses on the combined market outcomes of all individual choices.

The hands-on camp generally believes that

Output prices are determined in output markets.

Macroeconomics analyzes the performance of the whole Canadian economy and the global economy.

Thinking like a macroeconomist means focusing on the connections between

Understanding how interest rates are determined will help you decide what a good mortgage interest rate is.

When unemployment is high, workers have an advantage in bargaining over wages.

Macroeconomics looks at

If your income rises faster than the prices of what you buy, your standard of living decreases.