Question 1

Aneta has owned an Italian sports car for several years and now she wants to sell it.She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015.How is this sale included in the GDP for 2015?

Accepted Answer

A)  $8,500 is included in 2015 GDP 
B)  $39,000 is included in 2015 GDP 
C)  The increase in value of $10,500 is included in 2015 GDP 
D)  It is not included in 2015 GDP

Question 2

The 1960s are remembered by most economists as a period of

Accepted Answer

A)  very high rates of inflation. 
B)  very high rates of unemployment. 
C)  price controls and low inflation. 
D)  noninflationary growth. 
E)  all of the above.

Question 3

In the past 100 years the U.S.economy has primarily experienced

Accepted Answer

A)  deflation. 
B)  unemployment. 
C)  inflation. 
D)  depression.

Question 4

The key characteristic of macroeconomics is the process of aggregation.

Accepted Answer

A) True 
 B)False

Question 5

One of the initial problems facing the newly elected President Clinton was a large budget deficit.

Accepted Answer

A) True 
 B)False

Question 6

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment.
​

Accepted Answer

A) True 
 B)False

Question 7

The definition of Gross Domestic Product is

Accepted Answer

A)  the total value of all sales in the economy. 
B)  the total value of production in the domestic economy plus the production of domestic firms in foreign countries. 
C)  the total value of all sales of final and intermediate goods in the domestic economy. 
D)  the total of the money values of all final goods and services produced in the domestic economy within a specific time period.

Question 8

Usually,increased government spending for war increases inflationary pressures.The principal reason that inflation occurred during the Vietnam War and not during World War II was the existence,during World War II,of

Accepted Answer

A)  full employment. 
B)  government ownership of factories. 
C)  full production. 
D)  wage and price controls. 
E)  high levels of patriotism.

Question 9

Macroeconomic models use abstract concepts such as "price level" and "national income" that are calculated by combining many markets into one.This process is known as

Accepted Answer

A)  analysis and synthesis. 
B)  integration and derivation. 
C)  conceptualization. 
D)  aggregation.

Question 10

Business cycles in the United States after World War II have been

Accepted Answer

A)  more severe than before the war. 
B)  less severe than before the war. 
C)  the same as the pre-war cycles. 
D)  easier to predict than the pre-war cycles.

Question 11

In 1981,the Reagan administration employed a policy that included tax ____ while at the same time the Federal Reserve's strategy was to combat ____.

Accepted Answer

A)  cuts; unemployment 
B)  cuts; inflation 
C)  hikes; unemployment 
D)  hikes; inflation

Question 12

The most severe depression in the United States was the 30 percent decrease in real GDP that occurred between

Accepted Answer

A)  1899 and 1913. 
B)  1929 and 1933. 
C)  1959 and 1963. 
D)  1979 and 1983.

Question 13

Nominal GDP is another term for

Accepted Answer

A)  current dollar GDP. 
B)  constant dollar GDP. 
C)  adjusted dollar GDP. 
D)  relative value GDP.

Question 14

Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models.

Accepted Answer

A) True 
 B)False

Question 15

In 2015,you buy a beautiful vintage 1965 Thunderbird convertible.This purchase would

Accepted Answer

A)  be included in the GDP for 2015. 
B)  not be included in the GDP for 2015. 
C)  be included in both the GDP for 1965 and 2015. 
D)  be in the GDP for 2015 at a depreciated value.

Exam 5: An Introduction To Macroeconomics

Aneta has owned an Italian sports car for several years and now she wants to sell it.She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015.How is this sale included in the GDP for 2015?

The 1960s are remembered by most economists as a period of

In the past 100 years the U.S.economy has primarily experienced

The key characteristic of macroeconomics is the process of aggregation.

One of the initial problems facing the newly elected President Clinton was a large budget deficit.

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment.

The definition of Gross Domestic Product is

Usually,increased government spending for war increases inflationary pressures.The principal reason that inflation occurred during the Vietnam War and not during World War II was the existence,during World War II,of

Macroeconomic models use abstract concepts such as "price level" and "national income" that are calculated by combining many markets into one.This process is known as

Business cycles in the United States after World War II have been

In 1981,the Reagan administration employed a policy that included tax while at the same time the Federal Reserve's strategy was to combat .

The most severe depression in the United States was the 30 percent decrease in real GDP that occurred between

Nominal GDP is another term for

Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models.

In 2015,you buy a beautiful vintage 1965 Thunderbird convertible.This purchase would

Exam 5: An Introduction To Macroeconomics

Aneta has owned an Italian sports car for several years and now she wants to sell it.She paid $8,500 for it in 1993 and she has just sold it for $39,000 in 2015.How is this sale included in the GDP for 2015?

The 1960s are remembered by most economists as a period of

In the past 100 years the U.S.economy has primarily experienced

The key characteristic of macroeconomics is the process of aggregation.

One of the initial problems facing the newly elected President Clinton was a large budget deficit.

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment. ​

The definition of Gross Domestic Product is

Usually,increased government spending for war increases inflationary pressures.The principal reason that inflation occurred during the Vietnam War and not during World War II was the existence,during World War II,of

Macroeconomic models use abstract concepts such as "price level" and "national income" that are calculated by combining many markets into one.This process is known as

Business cycles in the United States after World War II have been

In 1981,the Reagan administration employed a policy that included tax ____ while at the same time the Federal Reserve's strategy was to combat ____.

The most severe depression in the United States was the 30 percent decrease in real GDP that occurred between

Nominal GDP is another term for

Supply and demand provides the basic explanatory framework for constructing both microeconomic and macroeconomic models.

In 2015,you buy a beautiful vintage 1965 Thunderbird convertible.This purchase would

Economist John Maynard Keynes wrote that the economy naturally gravitates toward smooth growth and high levels of employment.

In 1981,the Reagan administration employed a policy that included tax while at the same time the Federal Reserve's strategy was to combat .