Question 1

Fiscal policy entails changes in the quantity of money or the interest rate.

Accepted Answer

A) True 
 B)False

Question 2

Which would NOT be classified as a MACROECONOMIC question?

Accepted Answer

A)  How many people are employed in the economy as a whole? 
B)  What determines the overall level of prices? 
C)  What determines the overall trade in goods, services, and financial assets between the United States and the rest of the world? 
D)  What determines a university's cost of offering a new course? 
A)  How many people are employed in the economy as a whole? 
B)  What determines the overall level of prices? 
C)  What determines the overall trade in goods, services, and financial assets between the United States and the rest of the world? 
D)  What determines a university's cost of offering a new course?

Question 3

Price stability occurs when:

Accepted Answer

A)  the overall price level is zero. 
B)  the economy is at full employment. 
C)  the overall cost of living is changing very slowly. 
D)  food prices have remained the same. 
A)  the overall price level is zero. 
B)  the economy is at full employment. 
C)  the overall cost of living is changing very slowly. 
D)  food prices have remained the same.

Question 4

In many countries, economists adopt the rule that a recession is a period of at least _____ during which aggregate output falls.

Accepted Answer

A)  one quarter 
B)  two consecutive quarters 
C)  three consecutive quarters 
D)  a full year 
A)  one quarter 
B)  two consecutive quarters 
C)  three consecutive quarters 
D)  a full year

Question 5

A period of falling real GDP is a(n)________ in the business cycle:

Accepted Answer

A)  peak. 
B)  trough. 
C)  expansion. 
D)  recession. 
A)  peak. 
B)  trough. 
C)  expansion. 
D)  recession.

Question 6

Changing government spending and taxes to affect overall spending is use of _____ policy.

Accepted Answer

A)  tax-and-spend 
B)  monetary 
C)  fiscal 
D)  free-trade 
A)  tax-and-spend 
B)  monetary 
C)  fiscal 
D)  free-trade

Question 7

In contrast to the conclusions drawn from microeconomics, many economists argue that in macroeconomics, government:

Accepted Answer

A)  control of rent prices increases overall economic activity. 
B)  intervention in markets usually leaves society as a whole worse off. 
C)  taxation of goods and services does not cause a deadweight loss of economic welfare. 
D)  intervention in markets can prevent or reduce the effects of adverse events on the macroeconomy. 
A)  control of rent prices increases overall economic activity. 
B)  intervention in markets usually leaves society as a whole worse off. 
C)  taxation of goods and services does not cause a deadweight loss of economic welfare. 
D)  intervention in markets can prevent or reduce the effects of adverse events on the macroeconomy.

Question 8

Which would most likely be a MICROECONOMIC question?

Accepted Answer

A)  Should I go to business school or take a job? 
B)  What determines the overall salary levels paid to workers in a given year? 
C)  What government policies should be adopted to promote full employment and growth? 
D)  What determines the level of output for the economy as whole? 
A)  Should I go to business school or take a job? 
B)  What determines the overall salary levels paid to workers in a given year? 
C)  What government policies should be adopted to promote full employment and growth? 
D)  What determines the level of output for the economy as whole?

Fiscal policy entails changes in the quantity of money or the interest rate.

Which would NOT be classified as a MACROECONOMIC question?

Price stability occurs when:

In many countries, economists adopt the rule that a recession is a period of at least _____ during which aggregate output falls.

A period of falling real GDP is a(n)________ in the business cycle:

Changing government spending and taxes to affect overall spending is use of _____ policy.

In contrast to the conclusions drawn from microeconomics, many economists argue that in macroeconomics, government:

Which would most likely be a MICROECONOMIC question?

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters

Exam 6: Macroeconomics: the Big Picture

Fiscal policy entails changes in the quantity of money or the interest rate.

Which would NOT be classified as a MACROECONOMIC question?

Price stability occurs when:

In many countries, economists adopt the rule that a recession is a period of at least _____ during which aggregate output falls.

A period of falling real GDP is a(n)________ in the business cycle:

Changing government spending and taxes to affect overall spending is use of _____ policy.

In contrast to the conclusions drawn from microeconomics, many economists argue that in macroeconomics, government:

Which would most likely be a MICROECONOMIC question?

First Principles

Economic Models: Trade-Offs and Trade

Supply and Demand

Price Controls and Quotas: Meddling With Markets

International Trade

GDP and the CPI: Tracking the Macroeconomy

Unemployment and Inflation

Long-Run Economic Growth

Savings, Investment Spending, and the Financial Syst

Income and Expenditure

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money, Banking, and the Federal Reserve System

Monetary Policy

Inflation, Disinflation, and Deflation

Macroeconomics: Events and Ideas

International Macroeconomics

Filters