Exam 1: Introduction

Looking at the performance of the U.S.economy over the last five decades we realize that

The output gap shows the deviation of actual output from potential output and it

Which of the following is FALSE in the medium run?

Labor is fully employed when

Macroeconomics does NOT focus on

In the very short run, the level of

If we look at inflation as measured by the CPI in the U.S.over the last four decades, we realize that the rate of inflation

The position of the AS-curve depends on

As the economy enters a boom we can generally expect that

Real GDP can grow over time because of

Which of the following is NOT dealt with in microeconomics?

The average growth rate of real GDP per capita in the U.S.from 1965 to 2010 was about

The full-employment level of output is defined as

If the base year was last year, which of the following statements has to be FALSE for next year?

In the medium run, if GDP goes down but the price level goes up,

Which of the following countries had the lowest average annual per-capita income growth rate from 1965 to 2010?

The Phillips curve is often used to show the relationship between

Which of the following is the most important variable for judging an economy's long-run performance?

When the economy goes into a recession, we can generally expect that

In the simple macro model of this chapter, the long-run AS-curve is