Question 1

Since 1960 the U.S.inflation rate measured by the CPI has

Accepted Answer

A) increased at a steady rate 
B) remained remarkably constant 
C) fluctuated widely and has even occasionally been negative 
D) fluctuated widely and usually been positive although it has occasionally been negative 
E) always increased as the unemployment rate has declined 
A) increased at a steady rate 
B) remained remarkably constant 
C) fluctuated widely and has even occasionally been negative 
D) fluctuated widely and usually been positive although it has occasionally been negative 
E) always increased as the unemployment rate has declined

Question 2

When an economist indicates that the economy is no longer in a slump, he or she means to say that

Accepted Answer

A) nominal GDP is now above its trend path 
B) the economy is currently growing at a rate above three percent 
C) the economy has passed the worst of a recession and is now in the recovery phase 
D) the economic cycle has reached its peak 
E) none of the above 
A) nominal GDP is now above its trend path 
B) the economy is currently growing at a rate above three percent 
C) the economy has passed the worst of a recession and is now in the recovery phase 
D) the economic cycle has reached its peak 
E) none of the above

Question 3

The unemployment rate is defined as

Accepted Answer

A) the number of unemployed divided by total population 
B) the number of people not looking for jobs divided by the labor force 
C) the fraction of the labor force that cannot find jobs but who are actively looking 
D) the fraction of total population that cannot find jobs 
E) total population minus the number of employed workers 
A) the number of unemployed divided by total population 
B) the number of people not looking for jobs divided by the labor force 
C) the fraction of the labor force that cannot find jobs but who are actively looking 
D) the fraction of total population that cannot find jobs 
E) total population minus the number of employed workers

Question 4

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

Accepted Answer

A) Brazil 
B) China 
C) Japan 
D) United Kingdom 
E) United States 
A) Brazil 
B) China 
C) Japan 
D) United Kingdom 
E) United States

Question 5

Looking at how the rate of inflation and unemployment have behaved over the last three decades we can see that

Accepted Answer

A) unemployment and inflation have always increased together 
B) unemployment has always increased when inflation decreased 
C) there is no simple relationship between unemployment and inflation 
D) low unemployment always implies high inflation 
E) high unemployment always implies high inflation 
A) unemployment and inflation have always increased together 
B) unemployment has always increased when inflation decreased 
C) there is no simple relationship between unemployment and inflation 
D) low unemployment always implies high inflation 
E) high unemployment always implies high inflation

Question 6

The trend path of GDP can change because of efficiency improvements, which can result from

Accepted Answer

A) decreases in the unemployment rate 
B) increases in the rate of capacity utilization 
C) changes in knowledge 
D) decreases in waste 
E) all of the above 
A) decreases in the unemployment rate 
B) increases in the rate of capacity utilization 
C) changes in knowledge 
D) decreases in waste 
E) all of the above

Question 7

Which of the following is NOT a central issue in macroeconomics?

Accepted Answer

A) How should the central bank of a country fight inflation? 
B) What is responsible for high and persistent unemployment? 
C) How do tax changes influence consumers' choices of what to buy? 
D) What factors determine economic growth? 
E) What can or should the government do to stabilize the economy? 
A) How should the central bank of a country fight inflation? 
B) What is responsible for high and persistent unemployment? 
C) How do tax changes influence consumers' choices of what to buy? 
D) What factors determine economic growth? 
E) What can or should the government do to stabilize the economy?

Question 8

Which of the economists below most likely advocated activist government policies?

Accepted Answer

A) Milton Friedman 
B) John Maynard Keynes 
C) Robert Lucas 
D) Thomas Sargent 
E) Adam Smith 
A) Milton Friedman 
B) John Maynard Keynes 
C) Robert Lucas 
D) Thomas Sargent 
E) Adam Smith

Question 9

Japan's average growth rate of real GDP per capita from 1965 to 2010 was

Accepted Answer

A) more than twice as high as that of the U.S. 
B) about the same as that of the U.S. 
C) less than half as high as that of the U.S. 
D) higher than that of the U.S. but lower than that of the Republic of Korea 
E) lower than that of the U.S. but higher than that of the Republic of Korea 
A) more than twice as high as that of the U.S. 
B) about the same as that of the U.S. 
C) less than half as high as that of the U.S. 
D) higher than that of the U.S. but lower than that of the Republic of Korea 
E) lower than that of the U.S. but higher than that of the Republic of Korea

Question 10

Which of the following is a FALSE statement?

Accepted Answer

A) the very long run focuses on the growth of productive capacity 
B) in the very long run, the productive capacity is assumed to be given 
C) in the very short run, shifts in aggregate demand determine how much output is produced 
D) fluctuations in the rates of inflation and unemployment are important long-run issues 
E) at the full-employment level of output, capital is not used 100 percent 
A) the very long run focuses on the growth of productive capacity 
B) in the very long run, the productive capacity is assumed to be given 
C) in the very short run, shifts in aggregate demand determine how much output is produced 
D) fluctuations in the rates of inflation and unemployment are important long-run issues 
E) at the full-employment level of output, capital is not used 100 percent

Since 1960 the U.S.inflation rate measured by the CPI has

When an economist indicates that the economy is no longer in a slump, he or she means to say that

The unemployment rate is defined as

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

Looking at how the rate of inflation and unemployment have behaved over the last three decades we can see that

The trend path of GDP can change because of efficiency improvements, which can result from

Which of the following is NOT a central issue in macroeconomics?

Which of the economists below most likely advocated activist government policies?

Japan's average growth rate of real GDP per capita from 1965 to 2010 was

Which of the following is a FALSE statement?

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters

Exam 1: Introduction

Since 1960 the U.S.inflation rate measured by the CPI has

When an economist indicates that the economy is no longer in a slump, he or she means to say that

The unemployment rate is defined as

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

Looking at how the rate of inflation and unemployment have behaved over the last three decades we can see that

The trend path of GDP can change because of efficiency improvements, which can result from

Which of the following is NOT a central issue in macroeconomics?

Which of the economists below most likely advocated activist government policies?

Japan's average growth rate of real GDP per capita from 1965 to 2010 was

Which of the following is a FALSE statement?

National income accounting

Growth and accumulation

Growth and policy

Aggregate supply and demand

Aggregate supply and the phillips curve

Unemployment

Inflation

Policy preview

Income and spending

Money, interest, and income

Monetary and fiscal policy

International linkages

Consumption and saving

Investment spending

The demand for money

The fed, money, and credit

Policy

Financial markets and asset prices

The national debt

Recession and depression

Inflation and hyperinflation

International adjustment and interdependence

Advanced topics

Filters