Exam 22: An Introduction to Macroeconomics

Suppose that in 2011 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000.The amount this transaction would add to the GDP in 2011 is

A real estate salesperson sells a house in 2011 that was built in 2005.How does this transaction get counted in the GDP statistics?

Recessions

How do macroeconomists differ from microeconomists?

In contrast to the post-World War II period, before 1940 the government

The clearest sign of economic growth is a(n)

The period from 1983 to 1990 was characterized by

Is GDP an accurate measure of a country's well being?

The significantly high rates of inflation in the 1970s occurred, in part,

Gross Domestic Product is a monetary measure of

Which of the following items are included in GDP? For those items not included, explain why they are not included in GDP. a.Jane buys newly issued shares of stock in Macro.com, Inc. b.Ross buys a new pair of jeans at a local department store. c.Joey has his mustache trimmed at his hair salon. d.Rachel buys an antique chest at a resale shop. e.Monica makes her own pasta sauce in her apartment. f.Phoebe grows her own herbs on her apartment balcony. g.Michael travels to Austria and buys wine and cheese.

The international organization most responsible for rising prices during the 1970s was

The Great Depression of the 1930s led to a revolution in macroeconomic thinking, following the work of

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

In periods of generally rising prices,

The primary benefit to the macroeconomy of increasing government spending is a(n)

Real GDP is another term for

During economic fluctuations, markets tend to move

Which of the following is included in GDP?

A rightward shift in the aggregate demand curve is most likely to result in