Question 1

Periodic fluctuations in real GDP are called

Accepted Answer

A)  business cycles 
B)  recessions 
C)  peaks 
D)  expansions 
E)  troughs 
A)  business cycles 
B)  recessions 
C)  peaks 
D)  expansions 
E)  troughs

Question 2

The equilibrium price of automobiles is a primarily macroeconomic issue.

Accepted Answer

A) True 
 B)False

Question 3

Rapid economic growth has increased the economic well-being of U.S.citizens because

Accepted Answer

A)  people are now earning higher incomes while goods and services are cheaper 
B)  the dollar is worth now more than in the past 
C)  the output of goods and services has risen faster than the population 
D)  the population is now living and working longer 
E)  the population has increased while production has decreased 
A)  people are now earning higher incomes while goods and services are cheaper 
B)  the dollar is worth now more than in the past 
C)  the output of goods and services has risen faster than the population 
D)  the population is now living and working longer 
E)  the population has increased while production has decreased

Question 4

Economists regard some inflation as good for the economy.

Accepted Answer

A) True 
 B)False

Question 5

During the Great Depression of the 1930s,the unemployment rate in the United States peaked at around

Accepted Answer

A)  5 percent 
B)  10 percent 
C)  12 percent 
D)  25 percent 
E)  50 percent 
A)  5 percent 
B)  10 percent 
C)  12 percent 
D)  25 percent 
E)  50 percent

Question 6

The two phases of the business cycle are

Accepted Answer

A)  high economic growth and low economic growth 
B)  expansion and contraction 
C)  expansion and depression 
D)  high inflation and low inflation 
E)  potential economic growth and actual economic growth 
A)  high economic growth and low economic growth 
B)  expansion and contraction 
C)  expansion and depression 
D)  high inflation and low inflation 
E)  potential economic growth and actual economic growth

Question 7

Since the late 1970s,economic growth has

Accepted Answer

A)  occurred at a rapid pace compared to the period 1950-1973 
B)  improved living standards across the entire population 
C)  maintained approximately constant living standards across the entire population 
D)  improved the living standards of less-skilled workers while highly skilled workers have become worse off 
E)  improved the living standards of highly skilled workers while less-skilled workers have become worse off 
A)  occurred at a rapid pace compared to the period 1950-1973 
B)  improved living standards across the entire population 
C)  maintained approximately constant living standards across the entire population 
D)  improved the living standards of less-skilled workers while highly skilled workers have become worse off 
E)  improved the living standards of highly skilled workers while less-skilled workers have become worse off

Question 8

From 1929 to 1933,U.S.output dropped by about

Accepted Answer

A)  10 percent 
B)  20 percent 
C)  25 percent 
D)  50 percent 
E)  75 percent 
A)  10 percent 
B)  20 percent 
C)  25 percent 
D)  50 percent 
E)  75 percent

Question 9

In the Full Employment and Balanced Growth Act of 1978,Congress set a target rate of unemployment.The nation achieves this target rate

Accepted Answer

A)  in most years 
B)  at least once a year 
C)  only rarely 
D)  in election years 
E)  at least once every five years 
A)  in most years 
B)  at least once a year 
C)  only rarely 
D)  in election years 
E)  at least once every five years

Question 10

Which of the following is a major macroeconomic goal?

Accepted Answer

A)  Low prices 
B)  Declining prices 
C)  Pure competition 
D)  Stable prices 
E)  High prices 
A)  Low prices 
B)  Declining prices 
C)  Pure competition 
D)  Stable prices 
E)  High prices

Question 11

Inflation has never been a major problem in the U.S.

Accepted Answer

A) True 
 B)False

Question 12

When we study macroeconomics,

Accepted Answer

A)  we model tens of thousands of individual supply and demand curves 
B)  we determine thousands of prices and quantities 
C)  we employ aggregation to reduce the number of markets we need to understand 
D)  we add up all the demand and supply curves that are obtained in microeconomics 
E)  we add up the prices of all goods and services produced in the economy 
A)  we model tens of thousands of individual supply and demand curves 
B)  we determine thousands of prices and quantities 
C)  we employ aggregation to reduce the number of markets we need to understand 
D)  we add up all the demand and supply curves that are obtained in microeconomics 
E)  we add up the prices of all goods and services produced in the economy

Question 13

In recent years,each 1 percent drop in output is associated with the loss of more than

Accepted Answer

A)  five million jobs 
B)  one million jobs 
C)  half a million jobs 
D)  two hundred thousand jobs 
E)  one hundred thousand jobs 
A)  five million jobs 
B)  one million jobs 
C)  half a million jobs 
D)  two hundred thousand jobs 
E)  one hundred thousand jobs

Question 14

-Refer to Figure 5-1 above.If the economy goes from point A to point C on the graph,it is going through a(n)

Accepted Answer

A)  peak 
B)  trough 
C)  expansion 
D)  business cycle 
E)  recession 
A)  peak 
B)  trough 
C)  expansion 
D)  business cycle 
E)  recession

Question 15

John Maynard Keynes,author of The General Theory of Employment,Interest,and Money,argued that

Accepted Answer

A)  classical economic theory was correct 
B)  the government should follow a policy of laissez faire 
C)  the critiques of classical economics were flawed 
D)  the economy does not always perform well in the absence of government guidance 
E)  instead of focusing on money,the government should control interest rates 
A)  classical economic theory was correct 
B)  the government should follow a policy of laissez faire 
C)  the critiques of classical economics were flawed 
D)  the economy does not always perform well in the absence of government guidance 
E)  instead of focusing on money,the government should control interest rates

Question 16

The country that suffered an extreme inflation rate of 89,700,000,000,000,000,000,000 percent in November 2008 was

Accepted Answer

A)  England 
B)  Zimbabwe 
C)  Germany 
D)  Egypt 
E)  the former Soviet Union 
A)  England 
B)  Zimbabwe 
C)  Germany 
D)  Egypt 
E)  the former Soviet Union

Question 17

Most recessions last approximately three years.

Accepted Answer

A) True 
 B)False

Question 18

Over the past 80 years,real GDP has

Accepted Answer

A)  decreased in more years than it has increased 
B)  increased dramatically 
C)  increased slowly 
D)  increased moderately 
E)  been stable 
A)  decreased in more years than it has increased 
B)  increased dramatically 
C)  increased slowly 
D)  increased moderately 
E)  been stable

Question 19

The Full Employment and Balanced Growth Act of 1978 set the target unemployment rate for the United States economy at 4 percent.

Accepted Answer

A) True 
 B)False

Question 20

In only one of the following situations is a nation's standard of living certain to increase.Which one?

Accepted Answer

A)  Real GDP rises faster than population. 
B)  Real GDP rises faster than the price level. 
C)  Real GDP rises. 
D)  Real GDP rises faster than the number of people employed. 
E)  Real GDP rises faster than the number of people unemployed. 
A)  Real GDP rises faster than population. 
B)  Real GDP rises faster than the price level. 
C)  Real GDP rises. 
D)  Real GDP rises faster than the number of people employed. 
E)  Real GDP rises faster than the number of people unemployed.

Periodic fluctuations in real GDP are called

The equilibrium price of automobiles is a primarily macroeconomic issue.

Rapid economic growth has increased the economic well-being of U.S.citizens because

Economists regard some inflation as good for the economy.

During the Great Depression of the 1930s,the unemployment rate in the United States peaked at around

The two phases of the business cycle are

Since the late 1970s,economic growth has

From 1929 to 1933,U.S.output dropped by about

In the Full Employment and Balanced Growth Act of 1978,Congress set a target rate of unemployment.The nation achieves this target rate

Which of the following is a major macroeconomic goal?

Inflation has never been a major problem in the U.S.

When we study macroeconomics,

In recent years,each 1 percent drop in output is associated with the loss of more than

-Refer to Figure 5-1 above.If the economy goes from point A to point C on the graph,it is going through a(n)

John Maynard Keynes,author of The General Theory of Employment,Interest,and Money,argued that

The country that suffered an extreme inflation rate of 89,700,000,000,000,000,000,000 percent in November 2008 was

Most recessions last approximately three years.

Over the past 80 years,real GDP has

The Full Employment and Balanced Growth Act of 1978 set the target unemployment rate for the United States economy at 4 percent.

In only one of the following situations is a nation's standard of living certain to increase.Which one?

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters

Exam 5: What Macroeconomics Tries to Explain

Periodic fluctuations in real GDP are called

The equilibrium price of automobiles is a primarily macroeconomic issue.

Rapid economic growth has increased the economic well-being of U.S.citizens because

Economists regard some inflation as good for the economy.

During the Great Depression of the 1930s,the unemployment rate in the United States peaked at around

The two phases of the business cycle are

Since the late 1970s,economic growth has

From 1929 to 1933,U.S.output dropped by about

In the Full Employment and Balanced Growth Act of 1978,Congress set a target rate of unemployment.The nation achieves this target rate

Which of the following is a major macroeconomic goal?

Inflation has never been a major problem in the U.S.

When we study macroeconomics,

In recent years,each 1 percent drop in output is associated with the loss of more than

-Refer to Figure 5-1 above.If the economy goes from point A to point C on the graph,it is going through a(n)

John Maynard Keynes,author of The General Theory of Employment,Interest,and Money,argued that

The country that suffered an extreme inflation rate of 89,700,000,000,000,000,000,000 percent in November 2008 was

Most recessions last approximately three years.

Over the past 80 years,real GDP has

The Full Employment and Balanced Growth Act of 1978 set the target unemployment rate for the United States economy at 4 percent.

In only one of the following situations is a nation's standard of living certain to increase.Which one?

What is Economics?

Scarcity, Choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Production, Income, and Employment

The Price Level and Inflation

The Classical Long run Model

Economic Growth and Rising Living Standards

Economic Fluctuations

The Short-run Macro Model

Fiscal Policy

Money, Banks, and the Federal Reserve

The Money Market and Monetary Policy

Aggregate Demand and Aggregate Supply

Inflation and Monetary Policy

Exchange Rates and Macroeconomic Policy

Filters