Question 1

Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.

Accepted Answer

A) True 
 B)False

Question 2

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:

Accepted Answer

A) 0.5 billion. 
B) 1 billion. 
C) 8.3 billion. 
D) 258.3 billion. 
E) 2 billion.

Question 3

Which of these statements correctly explains the shape of the aggregate demand curve?​

Accepted Answer

A) As prices fall,nominal income rises and so does the demand for real goods and services. 
B) Rising prices reduce people's wealth and thereby decrease spending. 
C) With falling prices,government decides to spend less to increase the price level. 
D) Businesses increase investment spending in response to higher interest rates caused by inflation. 
E) As prices fall,domestically produced goods become more expensive relative to foreign goods,resulting in an increase in production.

Question 4

A key difference between recessions and depressions is that recessions are:

Accepted Answer

A) longer than depressions. 
B) more severe than depressions. 
C) accompanied by price increases,while depressions are accompanied by price decreases. 
D) shorter and less severe than depressions. 
E) accompanied by price decreases,while depressions are accompanied by price increases.

Question 5

Stagflation is a situation with high unemployment rates,high inflation rates,and little or no growth in the economy.

Accepted Answer

A) True 
 B)False

Question 6

The Reagan tax cut of 1981 was an attempt to:

Accepted Answer

A) stimulate aggregate supply. 
B) stimulate aggregate demand. 
C) stabilize the value of the U.S.dollar. 
D) increase demand for U.S.exports. 
E) reduce the federal budget deficit.

Question 7

A fall in the price level will:​

Accepted Answer

A) cause an upward movement upward along the aggregate demand curve. 
B) cause a downward movement along the aggregate demand curve. 
C) cause a leftward shift of the aggregate demand curve. 
D) cause a rightward shift of the aggregate demand curve. 
E) have no impact on the aggregate demand curve.

Question 8

Long-term growth in production in an economy can be partially explained by:

Accepted Answer

A) improvements in the rules of the game that facilitate production and exchange. 
B) the peaks and troughs of the business cycle or economic fluctuations. 
C) trade surpluses that lead to accumulations of precious metals. 
D) federal government budget deficits. 
E) a gradual but consistent increase in the price level.

Question 9

An economic variable that measures something at a particular point in time is called a _____.

Accepted Answer

A) stock variable 
B) periodic variable 
C) dummy variable 
D) flow variable 
E) constant variable

Question 10

Which of these is the best measure of the average standard of living in an economy?

Accepted Answer

A) The unemployment rate 
B) Nominal income 
C) Real GDP 
D) National debt 
E) Real GDP per capita

Question 11

As the price level increases,the amount of goods and services that consumers,businesses,and governments desire to purchase will change.This is depicted by:​

Accepted Answer

A) a leftward movement of the aggregate demand curve. 
B) a rightward movement of the aggregate demand curve. 
C) an upward movement along the aggregate demand curve. 
D) a downward movement along the aggregate demand curve. 
E) an increase in the slope of the aggregate demand curve.

Question 12

Confidence in Keynesian economics:

Accepted Answer

A) diminished in the 1960s as the unemployment rate fell. 
B) flourished in the 1960s despite two major recessions. 
C) diminished in the 1960s as unemployment increased. 
D) diminished in the 1970s as inflation occurred simultaneously with two recessions. 
E) flourished through the 1980s despite Reagan's supply-side policies.

Question 13

A depression can be defined as:​

Accepted Answer

A) a mild reduction in total production coupled with a rising unemployment rate that lasts for several years. 
B) a mild decline in total production that lasts less than six months. 
C) a severe fall in stock prices that causes financial panic and lasts for several years. 
D) a severe reduction in total production coupled with high unemployment that lasts for several years. 
E) a decline in government spending and taxes that lasts for several months.

Question 14

From 2009 to 2013,the price level in the U.S.has increased by 8.3 percent.This implies that the price index in 2012 was:​

Accepted Answer

A) 108.3. 
B) 183. 
C) 100. 
D) 98.3. 
E) 92.7.

Question 15

Which of these signifies the role of money in any economy?

Accepted Answer

A) It acts as a tool for poverty alleviation in an economy. 
B) It serves as a medium of exchange in an economy. 
C) It indicates the economic wellbeing of a nation. 
D) It helps to differentiate between the nominal and real income of a nation. 
E) It is a clear indicator of the growth in national income.

Question 16

Which of these is a central argument of Keynes's General Theory?

Accepted Answer

A) Competition does not allocate resources efficiently in a modern industrial economy. 
B) Full employment can be maintained even during a major recession if wage rates are lowered far enough. 
C) Modern industrial economies do not tend automatically toward full employment rates of output. 
D) Money does not play an important role in either causing or curing recession. 
E) Government can best stabilize the economy by letting the market system automatically adjust toward full employment.

Question 17

Due to the implementation of the Troubled Asset Relief Program and the American Recovery and Reinvestment Act,the Federal budget deficit _____.

Accepted Answer

A) doubled 
B) tripled 
C) stayed the same 
D) decreased significantly 
E) quadrupled

Question 18

The following table shows an aggregate demand schedule and an aggregate supply schedule.Which of the following is true?​ ​
Table 5.1
​

Accepted Answer

A) Equilibrium output is $1,000,and equilibrium price level is 25. 
B) Equilibrium output is $800,and equilibrium price level is 50. 
C) Equilibrium output is $200,and equilibrium price level is 125. 
D) Equilibrium output is $400,and equilibrium price level is 25. 
E) Equilibrium output is $600,and equilibrium price level is 75.

Question 19

Which of these faulty economic policies was adopted by President Hoover during the Great Depression?

Accepted Answer

A) An increase in tax rate 
B) An increase in trade barriers 
C) A decrease in tax rate 
D) A decrease in government spending 
E) An increase in government spending

Question 20

Identify the most likely impact of a decrease in the wealth of consumers in an economy,other things remaining constant.​

Accepted Answer

A) A leftward shift of the aggregate supply curve 
B) A leftward shift of the aggregate demand curve​ 
C) An upward movement along the aggregate demand curve​ 
D) A downward movement along the aggregate demand curve​ 
E) A steeper aggregate supply curve​

Exam 5: Introduction to Macroeconomics

Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:

Which of these statements correctly explains the shape of the aggregate demand curve?

A key difference between recessions and depressions is that recessions are:

Stagflation is a situation with high unemployment rates,high inflation rates,and little or no growth in the economy.

The Reagan tax cut of 1981 was an attempt to:

A fall in the price level will:

Long-term growth in production in an economy can be partially explained by:

An economic variable that measures something at a particular point in time is called a _____.

Which of these is the best measure of the average standard of living in an economy?

As the price level increases,the amount of goods and services that consumers,businesses,and governments desire to purchase will change.This is depicted by:

Confidence in Keynesian economics:

A depression can be defined as:

From 2009 to 2013,the price level in the U.S.has increased by 8.3 percent.This implies that the price index in 2012 was:

Which of these signifies the role of money in any economy?

Which of these is a central argument of Keynes's General Theory?

Due to the implementation of the Troubled Asset Relief Program and the American Recovery and Reinvestment Act,the Federal budget deficit _____.

The following table shows an aggregate demand schedule and an aggregate supply schedule.Which of the following is true? Table 5.1

Which of these faulty economic policies was adopted by President Hoover during the Great Depression?

Identify the most likely impact of a decrease in the wealth of consumers in an economy,other things remaining constant.

Exam 5: Introduction to Macroeconomics

Macroeconomics simply focuses on the annual performance of a particular national economy and ignores its interactions with other national economies around the world.

If the real GDP of a country in 2011 was 300 billion,its price index was 108.3,and its population was 150 billion,then real GDP per capita for that year was:

Which of these statements correctly explains the shape of the aggregate demand curve?​

A key difference between recessions and depressions is that recessions are:

Stagflation is a situation with high unemployment rates,high inflation rates,and little or no growth in the economy.

The Reagan tax cut of 1981 was an attempt to:

A fall in the price level will:​

Long-term growth in production in an economy can be partially explained by:

An economic variable that measures something at a particular point in time is called a _____.

Which of these is the best measure of the average standard of living in an economy?

As the price level increases,the amount of goods and services that consumers,businesses,and governments desire to purchase will change.This is depicted by:​

Confidence in Keynesian economics:

A depression can be defined as:​

From 2009 to 2013,the price level in the U.S.has increased by 8.3 percent.This implies that the price index in 2012 was:​

Which of these signifies the role of money in any economy?

Which of these is a central argument of Keynes's General Theory?

Due to the implementation of the Troubled Asset Relief Program and the American Recovery and Reinvestment Act,the Federal budget deficit _____.

The following table shows an aggregate demand schedule and an aggregate supply schedule.Which of the following is true?​ ​ Table 5.1 ​

Which of these faulty economic policies was adopted by President Hoover during the Great Depression?

Identify the most likely impact of a decrease in the wealth of consumers in an economy,other things remaining constant.​

Which of these statements correctly explains the shape of the aggregate demand curve?

A fall in the price level will:

As the price level increases,the amount of goods and services that consumers,businesses,and governments desire to purchase will change.This is depicted by:

A depression can be defined as:

From 2009 to 2013,the price level in the U.S.has increased by 8.3 percent.This implies that the price index in 2012 was:

The following table shows an aggregate demand schedule and an aggregate supply schedule.Which of the following is true? Table 5.1

Identify the most likely impact of a decrease in the wealth of consumers in an economy,other things remaining constant.