Exam 1: The Policy and Practice of Macroeconomics

An advantage of macroeconomic policy based on pre-specified rules might be that ________.

Opponents of rule-determined policies might point out that ________.

The Federal Reserve ________.

Since World War II the U.S. ________.

Recent events have convinced many that reforms are needed in the financial system to discourage speculation, in which people seek to make money by merely buying and selling pre-existing things, rather than by making new or better or, at least, more things. Describe how speculation might have macroeconomic consequences that justify government prohibition or regulation .

Economists apply the term "Great Inflation" to which decade?

An increase in interest rates might be an example of a ________ policy for the purpose of ________.

Consider an economic policy regime in which rules are well-known but frequently ignored. Which of these statements is true?

Raising taxes and cutting spending are examples of ________.

Macroeconomic models particularly focus on the following three economic data series.

Which of these economies has the highest saving rate?

In the 2000s, the U.S. economy had both a ________ and a ________.

The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________.

Macroeconomics is the study of ________ while microeconomics studies ________.

Nonactivists propose doing nothing in the face of economic hardship because ________.

Looking at the U.S. personal saving rate over the last sixty years, we can say that ________.

If a macroeconomist studying the causes of unemployment asserts that a particular change in technology will cause the rate of unemployment to decrease by ten percent, then this macroeconomist is at which step in the process of developing an economic model?

What explains the rise in income in the U.S. between 1900 and 2010?

Since World War II the U.S. ________.

The unemployment rate measures, at a point in time, the ________.