Question 1

When U.S. interest rates are relatively low compared to those of other countries, the U.S. dollar tends to

Accepted Answer

A)  become more popular. 
B)  appreciate in value. 
C)  depreciate in value. 
D)  appreciate then depreciate in value. 
A)  become more popular. 
B)  appreciate in value. 
C)  depreciate in value. 
D)  appreciate then depreciate in value. C

Question 2

Macroeconomists

Accepted Answer

A)  focus on the markets for individual commodities and on the decisions of single economic agents. 
B)  hold total income constant. 
C)  spend a great deal of time and energy investigating how people form their expectations and change them over time. 
D)  assume that economic adjustment occurs first through prices that change to balance supply and demand. 
A)  focus on the markets for individual commodities and on the decisions of single economic agents. 
B)  hold total income constant. 
C)  spend a great deal of time and energy investigating how people form their expectations and change them over time. 
D)  assume that economic adjustment occurs first through prices that change to balance supply and demand. C

Question 3

Which of the following is not one of the six key variables in macroeconomics?

Accepted Answer

A)  the level of employment in the automobile industry 
B)  the interest rate 
C)  the inflation rate 
D)  the level of the stock market. 
A)  the level of employment in the automobile industry 
B)  the interest rate 
C)  the inflation rate 
D)  the level of the stock market. A

Question 4

Which of the following is not one of the six key variables in macroeconomics?

Accepted Answer

A)  the exchange rate 
B)  the cost of a college education 
C)  the inflation rate 
D)  the unemployment rate. 
A)  the exchange rate 
B)  the cost of a college education 
C)  the inflation rate 
D)  the unemployment rate.

Question 5

At the end of 2003, the unemployment rate in the United States

Accepted Answer

A)  was approximately 4%. 
B)  was between 5% and 6%. 
C)  was between 7% and 9%. 
D)  was more than 10%. 
A)  was approximately 4%. 
B)  was between 5% and 6%. 
C)  was between 7% and 9%. 
D)  was more than 10%.

Question 6

If a domestic currency has depreciated

Accepted Answer

A)  foreign-made goods are cheap relative to domestic-made goods. 
B)  domestic-made goods are cheap relative to foreign-made goods. 
C)  exports are likely to decrease. 
D)  imports are likely to increase. 
A)  foreign-made goods are cheap relative to domestic-made goods. 
B)  domestic-made goods are cheap relative to foreign-made goods. 
C)  exports are likely to decrease. 
D)  imports are likely to increase.

Question 7

The 1970s was a decade of generally

Accepted Answer

A)  low output growth, increasing unemployment, and increasing inflation. 
B)  high output growth, increasing unemployment, and decreasing inflation. 
C)  low output growth, increasing unemployment, and decreasing inflation. 
D)  high output growth, decreasing unemployment, and decreasing inflation. 
A)  low output growth, increasing unemployment, and increasing inflation. 
B)  high output growth, increasing unemployment, and decreasing inflation. 
C)  low output growth, increasing unemployment, and decreasing inflation. 
D)  high output growth, decreasing unemployment, and decreasing inflation.

Question 8

The real exchange rate is

Accepted Answer

A)  the rate which banks charge the least risky businesses. 
B)  the rate which District Federal Reserve Banks charge member banks. 
C)  the rate at which the goods and services purchased in different countries can be exchanged one for another. 
D)  the rate at which the monies of different countries can be exchanged one for another. 
A)  the rate which banks charge the least risky businesses. 
B)  the rate which District Federal Reserve Banks charge member banks. 
C)  the rate at which the goods and services purchased in different countries can be exchanged one for another. 
D)  the rate at which the monies of different countries can be exchanged one for another.

Question 9

At the end of 2000, the unemployment rate in the United States

Accepted Answer

A)  was approximately 4%. 
B)  was between 5% and 6%. 
C)  was between 7% and 9%. 
D)  was more than 10%. 
A)  was approximately 4%. 
B)  was between 5% and 6%. 
C)  was between 7% and 9%. 
D)  was more than 10%.

Question 10

The 1960s was a decade of generally

Accepted Answer

A)  low output growth, increasing unemployment, and increasing inflation. 
B)  high output growth, increasing unemployment, and decreasing inflation. 
C)  high output growth, decreasing unemployment, and increasing inflation. 
D)  high output growth, decreasing unemployment, and decreasing inflation. 
A)  low output growth, increasing unemployment, and increasing inflation. 
B)  high output growth, increasing unemployment, and decreasing inflation. 
C)  high output growth, decreasing unemployment, and increasing inflation. 
D)  high output growth, decreasing unemployment, and decreasing inflation.

Question 11

Real GDP is a measure of the economy's

Accepted Answer

A)  unemployment level. 
B)  output level. 
C)  stock market level. 
D)  inflation rate. 
A)  unemployment level. 
B)  output level. 
C)  stock market level. 
D)  inflation rate.

Question 12

Sweden became richer than Argentina in the twentieth century because

Accepted Answer

A)  Argentina's output growth rate was larger than Sweden's. 
B)  Sweden is located in the northern hemisphere. 
C)  Sweden's output growth rate was larger than Argentina's. 
D)  Argentina is located in the southern hemisphere. 
A)  Argentina's output growth rate was larger than Sweden's. 
B)  Sweden is located in the northern hemisphere. 
C)  Sweden's output growth rate was larger than Argentina's. 
D)  Argentina is located in the southern hemisphere.

Question 13

Between 2000 and 2004, the gap between short-term and long-term real interest rates has

Accepted Answer

A)  decreased. 
B)  decreased and then increased. 
C)  remained the same. 
D)  increased. 
A)  decreased. 
B)  decreased and then increased. 
C)  remained the same. 
D)  increased.

Question 14

If a domestic currency has appreciated

Accepted Answer

A)  foreign-made goods are cheap relative to domestic-made goods. 
B)  domestic-made goods are cheap relative to foreign-made goods. 
C)  exports are likely to increase. 
D)  imports are likely to decrease. 
A)  foreign-made goods are cheap relative to domestic-made goods. 
B)  domestic-made goods are cheap relative to foreign-made goods. 
C)  exports are likely to increase. 
D)  imports are likely to decrease.

Question 15

Since 1997 real stock market index prices have far exceeded their standard, conventional valuation of
_______ times earnings.

Accepted Answer

A)  thirty 
B)  forty 
C)  fifteen 
D)  twenty five 
A)  thirty 
B)  forty 
C)  fifteen 
D)  twenty five

Question 16

Macroeconomists

Accepted Answer

A)  focus on the economy as a whole. 
B)  hold total income constant. 
C)  don't worry much about how decision makers form their expectations. 
D)  assume that economic adjustment occurs first through prices that change to balance supply and demand. 
A)  focus on the economy as a whole. 
B)  hold total income constant. 
C)  don't worry much about how decision makers form their expectations. 
D)  assume that economic adjustment occurs first through prices that change to balance supply and demand.

Question 17

Which of the following is not one of the reasons economists offer for the phenomenon of real stock market index prices far exceeding their standard, conventional valuation?

Accepted Answer

A)  an irrational speculative mania. 
B)  an increased tolerance for risk. 
C)  a decreased desire to purchase goods and services. 
D)  expectations of rapid future economic growth on the part of investors. 
A)  an irrational speculative mania. 
B)  an increased tolerance for risk. 
C)  a decreased desire to purchase goods and services. 
D)  expectations of rapid future economic growth on the part of investors.

Question 18

Which of the following is not a concern of macroeconomics?

Accepted Answer

A)  economy-wide employment and unemployment 
B)  the aggregate price level 
C)  product pricing 
D)  economy-wide levels of production 
A)  economy-wide employment and unemployment 
B)  the aggregate price level 
C)  product pricing 
D)  economy-wide levels of production

Question 19

Which of the following is not likely to be considered part of economic activity?

Accepted Answer

A)  Purchasing a new bicycle. 
B)  Working in a restaurant. 
C)  Making steel rods for use in bridge construction. 
D)  Mowing your own lawn. 
A)  Purchasing a new bicycle. 
B)  Working in a restaurant. 
C)  Making steel rods for use in bridge construction. 
D)  Mowing your own lawn.

Question 20

Inflation in the United States in the latter half of the 1990s was generally

Accepted Answer

A)  lower than in the 1970s. 
B)  lower than in the 1960s. 
C)  higher than in the 1980s. 
D)  lower than in the 1950s. 
A)  lower than in the 1970s. 
B)  lower than in the 1960s. 
C)  higher than in the 1980s. 
D)  lower than in the 1950s.

When U.S. interest rates are relatively low compared to those of other countries, the U.S. dollar tends to

Macroeconomists

Which of the following is not one of the six key variables in macroeconomics?

Which of the following is not one of the six key variables in macroeconomics?

At the end of 2003, the unemployment rate in the United States

If a domestic currency has depreciated

The 1970s was a decade of generally

The real exchange rate is

At the end of 2000, the unemployment rate in the United States

The 1960s was a decade of generally

Real GDP is a measure of the economy's

Sweden became richer than Argentina in the twentieth century because

Between 2000 and 2004, the gap between short-term and long-term real interest rates has

If a domestic currency has appreciated

Since 1997 real stock market index prices have far exceeded their standard, conventional valuation of _______ times earnings.

Macroeconomists

Which of the following is not one of the reasons economists offer for the phenomenon of real stock market index prices far exceeding their standard, conventional valuation?

Which of the following is not a concern of macroeconomics?

Which of the following is not likely to be considered part of economic activity?

Inflation in the United States in the latter half of the 1990s was generally

Measuring the Macroeconomy

Thinking Like an Economist

The Theory of Economic Growth

The Reality of Economic Growth: History and Prospect

Building Blocks of the Flexible-Price Model

Equilibrium in the Flexible-Price M Odel

Money, Prices, and Inflation

The Sticky-Price Income-Expenditure Framework: Consumption and the Multiplier

Investment, Net Exports, and Interest Rates: The Is Curve

The Money Market and the LM Curve

The Phillips Curve, Expectations, and Monetary Policy

Stabilization Policy

Budget Balance, National Debt, and Investment

International Economic Policy

Changes in the Macroeconomy and Changes in Macroeconomic Policy

The Future of Macroeconomics

Epilogue

Filters

Exam 1: Introduction to Macroeconomics

When U.S. interest rates are relatively low compared to those of other countries, the U.S. dollar tends to

Macroeconomists

Which of the following is not one of the six key variables in macroeconomics?

Which of the following is not one of the six key variables in macroeconomics?

At the end of 2003, the unemployment rate in the United States

If a domestic currency has depreciated

The 1970s was a decade of generally

The real exchange rate is

At the end of 2000, the unemployment rate in the United States

The 1960s was a decade of generally

Real GDP is a measure of the economy's

Sweden became richer than Argentina in the twentieth century because

Between 2000 and 2004, the gap between short-term and long-term real interest rates has

If a domestic currency has appreciated

Since 1997 real stock market index prices have far exceeded their standard, conventional valuation of _______ times earnings.

Macroeconomists

Which of the following is not one of the reasons economists offer for the phenomenon of real stock market index prices far exceeding their standard, conventional valuation?

Which of the following is not a concern of macroeconomics?

Which of the following is not likely to be considered part of economic activity?

Inflation in the United States in the latter half of the 1990s was generally

Measuring the Macroeconomy

Thinking Like an Economist

The Theory of Economic Growth

The Reality of Economic Growth: History and Prospect

Building Blocks of the Flexible-Price Model

Equilibrium in the Flexible-Price M Odel

Money, Prices, and Inflation

The Sticky-Price Income-Expenditure Framework: Consumption and the Multiplier

Investment, Net Exports, and Interest Rates: The Is Curve

The Money Market and the LM Curve

The Phillips Curve, Expectations, and Monetary Policy

Stabilization Policy

Budget Balance, National Debt, and Investment

International Economic Policy

Changes in the Macroeconomy and Changes in Macroeconomic Policy

The Future of Macroeconomics

Epilogue

Filters