Question 1

Which of the following is not one of the six key variables in macroeconomics?

Accepted Answer

A)  the unemployment rate 
B)  the exchange rate 
C)  the price of Microsoft stock 
D)  the level of the stock market.

Question 2

The yield curve shows the difference between

Accepted Answer

A)  short-term and long-term exchange rates. 
B)  short-term and long-term unemployment rates. 
C)  short-term and long-term interest rates. 
D)  short-term and long-term inflation rates.

Question 3

In 2000 prices, real GDP per worker has reached a level of approximately

Accepted Answer

A)  $65,000 in the year 2000. 
B)  $73,000 in the year 2000. 
C)  $50,000 in the year 2000. 
D)  $80,000 in the year 2000.

Question 4

Since the early 1980s, real interest rates have generally been _______ the levels of the 1960s and 1970s.

Accepted Answer

A)  unchanged from 
B)  lower than 
C)  higher than 
D)  sometimes higher and sometimes lower than

Question 5

When interest rates increase,

Accepted Answer

A)  investment spending tends to decrease. 
B)  investment spending tends to increase. 
C)  investment spending isn't generally affected. 
D)  investment spending tends to increase and then decrease.

Question 6

Unemployment which is the result of a downturn in the business cycle is called __________
Unemployment.

Accepted Answer

A)  frictional 
B)  structural 
C)  cyclical 
D)  voluntary

Question 7

Since the early 1980s, the gap between short-term and long-term real interest rates has been _______ the levels of the 1960s and 1970s.

Accepted Answer

A)  unchanged from 
B)  lower than 
C)  higher than 
D)  sometimes higher and sometimes lower than

Question 8

The two major macroeconomic policy of the government are

Accepted Answer

A)  tax and spending policies. 
B)  growth policy and monetary policy. 
C)  growth policy and stabilization policy. 
D)  monetary policy and stabilization policy.

Question 9

Macroeconomists

Accepted Answer

A)  hold total income constant. 
B)  spend much time analyzing how total income changes, and how changes in income cause changes inother modes of economic behavior. 
C)  don't worry much about how decision makers form their expectations. 
D)  assume that economic adjustment occurs first through prices that change to balance supply and demand.

Question 10

Estimates of the value and composition of economic activity are the fundamental data of macroeconomics and are principally contained in

Accepted Answer

A)  the National Income and Product Accounts (NIP
A) . 
B)  the New York Times. 
C)  the Washington Times. 
D)  the American Economic Review.

Question 11

In the first half of the 2000s, real GDP in the United States was

Accepted Answer

A)  greater than its trend level. 
B)  equal to its trend level. 
C)  less than its trend level. 
D)  not relevant to its trend level.

Question 12

Real GDP per worker approximately _________ since 1890.

Accepted Answer

A)  doubled 
B)  tripled 
C)  sextupled 
D)  quintupled

Question 13

Fluctuations in production and employment are commonly referred to as

Accepted Answer

A)  palpitations. 
B)  booms. 
C)  unemployment. 
D)  business cycles.

Question 14

The ________________ is the best indicator of how well the economy is doing relative to its potential output.

Accepted Answer

A)  unemployment rate. 
B)  inflation rate 
C)  interest rate 
D)  exchange rate.

Question 15

In the latter half of the 1990s, real GDP in the United States was

Accepted Answer

A)  greater than its trend level. 
B)  equal to its trend level. 
C)  less than its trend level. 
D)  not relevant to its trend level.

Question 16

Which of the following is not one of the six key variables in macroeconomics?

Accepted Answer

A)  the unemployment rate 
B)  the price of wheat 
C)  the inflation rate 
D)  the level of the stock market.

Question 17

Which of the following is not likely to be considered part of economic activity?

Accepted Answer

A)  Cleaning your apartment. 
B)  Hiring someone to mow your lawn. 
C)  Making pancakes in a restaurant. 
D)  Renting an apartment.

Question 18

At the end of 1982, the unemployment rate in the United States

Accepted Answer

A)  was less than 4%. 
B)  was between 4% and 7%. 
C)  was between 7% and 10%. 
D)  was more than 10%.

Question 19

Which of the following is not a reason to study macroeconomics?

Accepted Answer

A)  to gain cultural literacy 
B)  to understand how macroeconomic trends affect you personally 
C)  to exercise your responsibility as a citizen 
D)  to learn how to become wealthy

Question 20

Microeconomists

Accepted Answer

A)  focus on the markets for individual commodities and on the decisions of single economic agents. 
B)  spend much time analyzing how total income changes, and how changes in income cause changes in other modes of economic behavior. 
C)  spend a great deal of time and energy investigating how people form their expectations and change them over time. 
D)  consider the possibility that decision makers might change the quantities they produce before they change the prices they charge.

Exam 1: Introduction to Macroeconomics

Which of the following is not one of the six key variables in macroeconomics?

The yield curve shows the difference between

In 2000 prices, real GDP per worker has reached a level of approximately

Since the early 1980s, real interest rates have generally been _______ the levels of the 1960s and 1970s.

When interest rates increase,

Unemployment which is the result of a downturn in the business cycle is called __________ Unemployment.

Since the early 1980s, the gap between short-term and long-term real interest rates has been _______ the levels of the 1960s and 1970s.

The two major macroeconomic policy of the government are

Macroeconomists

Estimates of the value and composition of economic activity are the fundamental data of macroeconomics and are principally contained in

In the first half of the 2000s, real GDP in the United States was

Real GDP per worker approximately _________ since 1890.

Fluctuations in production and employment are commonly referred to as

The ________________ is the best indicator of how well the economy is doing relative to its potential output.

In the latter half of the 1990s, real GDP in the United States was

Which of the following is not one of the six key variables in macroeconomics?

Which of the following is not likely to be considered part of economic activity?

At the end of 1982, the unemployment rate in the United States

Which of the following is not a reason to study macroeconomics?

Microeconomists