Question 1

An economic variable that is measured per unit of time, such as spending per year, is known as a _____

Accepted Answer

A)  stock variable. 
B)  periodic variable. 
C)  dummy variable 
D)  flow variable. 
E)  controlled variable. 
A)  stock variable. 
B)  periodic variable. 
C)  dummy variable 
D)  flow variable. 
E)  controlled variable.

Question 2

Which of these is a lagging economic indicator?

Accepted Answer

A)  the unemployment rate 
B)  personal income 
C)  industrial production 
D)  total employment 
E)  fluctuations in stock prices 
A)  the unemployment rate 
B)  personal income 
C)  industrial production 
D)  total employment 
E)  fluctuations in stock prices

Question 3

Which of the following describes an economy's price level?

Accepted Answer

A)  the cost of producing goods and services using domestically owned factors of production 
B)  the difference between nominal GDP and real GDP for a particular year 
C)  the year-to-year changes in the prices of consumer goods 
D)  the total price of aggregate output 
E)  the average price of aggregate output 
A)  the cost of producing goods and services using domestically owned factors of production 
B)  the difference between nominal GDP and real GDP for a particular year 
C)  the year-to-year changes in the prices of consumer goods 
D)  the total price of aggregate output 
E)  the average price of aggregate output

Question 4

Which of the following partly accounts for the long-term growth in production in the U.S. economy?

Accepted Answer

A)  an increase in government spending 
B)  an increase in the availability of resources 
C)  a reduction in federal taxes 
D)  a gradual but consistent increase in the price level 
E)  a general optimism about the future and the pioneering spirit of America 
A)  an increase in government spending 
B)  an increase in the availability of resources 
C)  a reduction in federal taxes 
D)  a gradual but consistent increase in the price level 
E)  a general optimism about the future and the pioneering spirit of America

Question 5

When business leaders become pessimistic about future sales and profits and decrease their spending on plant and equipment, their expectations are usually fulfilled.

Accepted Answer

A) True 
 B)False

Question 6

By a leading economic indicator, economists mean _____

Accepted Answer

A)  an indicator of future economic activity. 
B)  an indicator that reflects economic fluctuations as they occur. 
C)  a highly accurate indicator that is easily measured. 
D)  an indicator that predicts the level of inflation in an economy. 
E)  any variable that follows changes in economic activity. 
A)  an indicator of future economic activity. 
B)  an indicator that reflects economic fluctuations as they occur. 
C)  a highly accurate indicator that is easily measured. 
D)  an indicator that predicts the level of inflation in an economy. 
E)  any variable that follows changes in economic activity.

Question 7

According to Keynes, in order to get the economy out of a recession, the government should _____

Accepted Answer

A)  follow an expansionary fiscal policy. 
B)  encourage firms to export to other nations. 
C)  follow a contractionary fiscal policy. 
D)  follow a contractionary monetary policy. 
E)  not interfere in the market and let the market system heal itself. 
A)  follow an expansionary fiscal policy. 
B)  encourage firms to export to other nations. 
C)  follow a contractionary fiscal policy. 
D)  follow a contractionary monetary policy. 
E)  not interfere in the market and let the market system heal itself.

Question 8

The laissez-faire approach that was popular before the Great Depression influenced the U.S. government to see business downturns as _____

Accepted Answer

A)  natural phases in an otherwise healthy system and to therefore take short-term deficit spending measures to help recovery. 
B)  natural phases in an otherwise healthy system and to therefore wait for recovery to occur naturally. 
C)  serious maladies in an otherwise healthy system and to therefore work to redesign the system to avoid such failures in the future. 
D)  failures of the type of system that Adam Smith envisaged and to therefore work to move toward an open economy with free trade. 
E)  failures of the system to achieve the form that Adam Smith envisaged and to therefore work to decrease government interference at the micro level. 
A)  natural phases in an otherwise healthy system and to therefore take short-term deficit spending measures to help recovery. 
B)  natural phases in an otherwise healthy system and to therefore wait for recovery to occur naturally. 
C)  serious maladies in an otherwise healthy system and to therefore work to redesign the system to avoid such failures in the future. 
D)  failures of the type of system that Adam Smith envisaged and to therefore work to move toward an open economy with free trade. 
E)  failures of the system to achieve the form that Adam Smith envisaged and to therefore work to decrease government interference at the micro level.

Question 9

The federal debt is a stock variable that measures the net accumulation of prior federal deficits.

Accepted Answer

A) True 
 B)False

Question 10

An increase in wage rate, other things constant, shifts the aggregate supply curve downward.

Accepted Answer

A) True 
 B)False

Question 11

If the real GDP of a country in 2017 was $300 billion, its price index was 108.3, and its population was 150 billion, then real GDP per capita for that year was _____

Accepted Answer

A)  $0.5 billion 
B)  $1 billion 
C)  $8.3 billion 
D)  $258.3 billion 
E)  $2 billion 
A)  $0.5 billion 
B)  $1 billion 
C)  $8.3 billion 
D)  $258.3 billion 
E)  $2 billion

Question 12

Macroeconomists test their theories using controlled economy-wide experiments of various kinds.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following financial institutions reported the largest bankruptcy in U.S. history in September 2008?

Accepted Answer

A)  Morgan Stanley 
B)  Goldman Sachs 
C)  Lehman Brothers 
D)  JP Morgan Chase 
E)  Barclays Capital 
A)  Morgan Stanley 
B)  Goldman Sachs 
C)  Lehman Brothers 
D)  JP Morgan Chase 
E)  Barclays Capital

Question 14

Macroeconomics is especially interested in _____

Accepted Answer

A)  the effect of tariffs and quotas on the production of goods and services. 
B)  what makes an economy grow. 
C)  how the overall economy works. 
D)  improving the competitiveness of U.S. firms. 
E)  maximizing the efficiency of government. 
A)  the effect of tariffs and quotas on the production of goods and services. 
B)  what makes an economy grow. 
C)  how the overall economy works. 
D)  improving the competitiveness of U.S. firms. 
E)  maximizing the efficiency of government.

Question 15

Which of the following best describes a stock rather than a flow?

Accepted Answer

A)  Each week, you save $100. 
B)  Each week, you buy $10 worth of gasoline. 
C)  Each week, you buy $50 worth of groceries. 
D)  You earn $500 per week at your job. 
E)  You own $5,000 worth of government bonds. 
A)  Each week, you save $100. 
B)  Each week, you buy $10 worth of gasoline. 
C)  Each week, you buy $50 worth of groceries. 
D)  You earn $500 per week at your job. 
E)  You own $5,000 worth of government bonds.

Question 16

Table 5.1
 $$\begin{array}{l}
\text { Table } 5.1\
\begin{array} { | c | c | c | } 
\hline \begin{array} { l } 
\text { Aggregate Demand (quantity } \
\text { demanded in billions of dollars) }
\end{array} & \begin{array} { l } 
\text { Price Level } \
( \$ )
\end{array} & \begin{array} { l } 
\text { Aggregate Supply (quantity supplied in billions of } \
\text { dollars) }
\end{array} \
\hline 100 & 150 & 1,200 \
\hline 200 & 125 & 1,000 \
\hline 400 & 100 & 800 \
\hline 600 & 75 & 600 \
\hline 800 & 50 & 400 \
\hline 1,000 & 25 & 200 \
\hline
\end{array}
\end{array}$$
-Refer to Table 5.1, which shows an aggregate demand schedule and an aggregate supply schedule. What is aggregate demand at a price level of $75?

Accepted Answer

A)  $100 billion dollars 
B)  $200 billion dollars 
C)  $400 billion dollars 
D)  $600 billion dollars 
E)  $800 billion dollars 
A)  $100 billion dollars 
B)  $200 billion dollars 
C)  $400 billion dollars 
D)  $600 billion dollars 
E)  $800 billion dollars

Question 17

How much more output did the U.S. economy produce in 2016 compared to 1929?

Accepted Answer

A)  8 times more output 
B)  10 times more output 
C)  12 times more output 
D)  14 times more output 
E)  16 times more output 
A)  8 times more output 
B)  10 times more output 
C)  12 times more output 
D)  14 times more output 
E)  16 times more output

Question 18

The Employment Act of 1946 _____

Accepted Answer

A)  guaranteed employment to all the citizens of the United States. 
B)  allowed the federal government to hire as many people as it could to achieve full employment. 
C)  gave the federal government the power to levy an income tax. 
D)  imposed a responsibility on the federal government to promote maximum employment. 
E)  obligated the federal government to run budget surpluses to achieve full employment. 
A)  guaranteed employment to all the citizens of the United States. 
B)  allowed the federal government to hire as many people as it could to achieve full employment. 
C)  gave the federal government the power to levy an income tax. 
D)  imposed a responsibility on the federal government to promote maximum employment. 
E)  obligated the federal government to run budget surpluses to achieve full employment.

Question 19

Which of the statements best describes a flow variable?

Accepted Answer

A)  an economic variable that measures something at a particular point in time 
B)  an economic variable whose value is determined by the market 
C)  an economic variable that is measured per unit of time 
D)  an economic variable whose value shows no change over time 
E)  an economic variable that remains static when other related variables change 
A)  an economic variable that measures something at a particular point in time 
B)  an economic variable whose value is determined by the market 
C)  an economic variable that is measured per unit of time 
D)  an economic variable whose value shows no change over time 
E)  an economic variable that remains static when other related variables change

Question 20

Which of the following is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?

Accepted Answer

A)  an increase in the quantity of real GDP supplied 
B)  a decrease in the quantity of real GDP supplied 
C)  a leftward shift of the aggregate supply curve 
D)  a rightward shift of the aggregate supply curve 
E)  an increase in the slope of the aggregate supply curve 
A)  an increase in the quantity of real GDP supplied 
B)  a decrease in the quantity of real GDP supplied 
C)  a leftward shift of the aggregate supply curve 
D)  a rightward shift of the aggregate supply curve 
E)  an increase in the slope of the aggregate supply curve

An economic variable that is measured per unit of time, such as spending per year, is known as a _____

Which of these is a lagging economic indicator?

Which of the following describes an economy's price level?

Which of the following partly accounts for the long-term growth in production in the U.S. economy?

When business leaders become pessimistic about future sales and profits and decrease their spending on plant and equipment, their expectations are usually fulfilled.

By a leading economic indicator, economists mean _____

According to Keynes, in order to get the economy out of a recession, the government should _____

The laissez-faire approach that was popular before the Great Depression influenced the U.S. government to see business downturns as _____

The federal debt is a stock variable that measures the net accumulation of prior federal deficits.

An increase in wage rate, other things constant, shifts the aggregate supply curve downward.

If the real GDP of a country in 2017 was $300 billion, its price index was 108.3, and its population was 150 billion, then real GDP per capita for that year was _____

Macroeconomists test their theories using controlled economy-wide experiments of various kinds.

Which of the following financial institutions reported the largest bankruptcy in U.S. history in September 2008?

Macroeconomics is especially interested in _____

Which of the following best describes a stock rather than a flow?

How much more output did the U.S. economy produce in 2016 compared to 1929?

The Employment Act of 1946 _____

Which of the statements best describes a flow variable?

Which of the following is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters

Exam 5: Introduction to Macroeconomics.

An economic variable that is measured per unit of time, such as spending per year, is known as a _____

Which of these is a lagging economic indicator?

Which of the following describes an economy's price level?

Which of the following partly accounts for the long-term growth in production in the U.S. economy?

When business leaders become pessimistic about future sales and profits and decrease their spending on plant and equipment, their expectations are usually fulfilled.

By a leading economic indicator, economists mean _____

According to Keynes, in order to get the economy out of a recession, the government should _____

The laissez-faire approach that was popular before the Great Depression influenced the U.S. government to see business downturns as _____

The federal debt is a stock variable that measures the net accumulation of prior federal deficits.

An increase in wage rate, other things constant, shifts the aggregate supply curve downward.

If the real GDP of a country in 2017 was $300 billion, its price index was 108.3, and its population was 150 billion, then real GDP per capita for that year was _____

Macroeconomists test their theories using controlled economy-wide experiments of various kinds.

Which of the following financial institutions reported the largest bankruptcy in U.S. history in September 2008?

Macroeconomics is especially interested in _____

Which of the following best describes a stock rather than a flow?

How much more output did the U.S. economy produce in 2016 compared to 1929?

The Employment Act of 1946 _____

Which of the statements best describes a flow variable?

Which of the following is a likely impact of a decrease in the price level in an economy on the aggregate supply in the economy?

The Art and Science of Economic Analysis.

Economic Tools and Economic Systems.

Economic Decision Makers.

Demand, Supply, and Markets.

Tracking the U. S. Economy.

Unemployment and Inflation.

Productivity and Growth.

Aggregate Demand.

Aggregate Supply.

Fiscal Policy.

Federal Budgets and Public Policy.

Money and the Financial System.

Banking and the Money Supply.

Monetary Theory and Policy.

Macro Policy Debate: Active or Passive?

International Trade.

International Finance.

Economic Development.

Filters