Question 1

Between 1947 and 2011,

Accepted Answer

A)  Exports decreased and imports decreased. 
B)  Exports and imports increased. 
C)  The current account surplus rose. 
D)  The current account deficit fell. 
A)  Exports decreased and imports decreased. 
B)  Exports and imports increased. 
C)  The current account surplus rose. 
D)  The current account deficit fell.

Question 2

The business cycle component of the log of real per-capita GNP is equal to

Accepted Answer

A)  log of actual real GNP - log of trend GNP. 
B)  log of trend GNP ÷ log of actual real GNP. 
C)  log of trend GNP - log of actual real GNP. 
D)  log of actual real GNP ÷ log of trend GNP. 
A)  log of actual real GNP - log of trend GNP. 
B)  log of trend GNP ÷ log of actual real GNP. 
C)  log of trend GNP - log of actual real GNP. 
D)  log of actual real GNP ÷ log of trend GNP.

Question 3

In the long run,inflation is caused by

Accepted Answer

A)  aggressive labor unions. 
B)  greedy monopolists. 
C)  growth in the money supply. 
D)  global warming. 
A)  aggressive labor unions. 
B)  greedy monopolists. 
C)  growth in the money supply. 
D)  global warming.

Question 4

In 2011,the per-capita GDP in the United States,in 2005 dollars,was about

Accepted Answer

A)  $17,500. 
B)  $27,500. 
C)  $43,000. 
D)  $47,500. 
A)  $17,500. 
B)  $27,500. 
C)  $43,000. 
D)  $47,500.

Question 5

Unemployment,at the aggregate level.,

Accepted Answer

A)  is avoidable. 
B)  is part of a well-functioning economy. 
C)  is always a sign of market failure. 
D)  would not happen with good policy. 
A)  is avoidable. 
B)  is part of a well-functioning economy. 
C)  is always a sign of market failure. 
D)  would not happen with good policy.

Question 6

Over the long run,taxes and government expenses have

Accepted Answer

A)  remained relatively stable. 
B)  decreased. 
C)  increased. 
D)  drifted apart. 
A)  remained relatively stable. 
B)  decreased. 
C)  increased. 
D)  drifted apart.

Question 7

For macroeconomics,banks

Accepted Answer

A)  are similar to other firms. 
B)  can be abstracted away. 
C)  play a key role. 
D)  are similar to households. 
A)  are similar to other firms. 
B)  can be abstracted away. 
C)  play a key role. 
D)  are similar to households.

Question 8

A trade-off between aggregate output and inflation

Accepted Answer

A)  is theoretically possible, but has never been observed in practice. 
B)  may exist in the short run, but not in the long run. 
C)  may exist in the long run, but not in the short run. 
D)  exists in both the short run and the long run. 
A)  is theoretically possible, but has never been observed in practice. 
B)  may exist in the short run, but not in the long run. 
C)  may exist in the long run, but not in the short run. 
D)  exists in both the short run and the long run.

Question 9

Which aspect of macroeconomics generates the most controversy?

Accepted Answer

A)  economic growth 
B)  the causes of business cycles 
C)  supply and demand 
D)  competitive equilibrium 
A)  economic growth 
B)  the causes of business cycles 
C)  supply and demand 
D)  competitive equilibrium

Question 10

According to real business cycle theory,the primary causes of business cycles are

Accepted Answer

A)  shocks to aggregate demand. 
B)  monetary factors. 
C)  technology shocks. 
D)  waves of self-fulfilling optimism and pessimism. 
A)  shocks to aggregate demand. 
B)  monetary factors. 
C)  technology shocks. 
D)  waves of self-fulfilling optimism and pessimism.

Question 11

According to Keynesian coordination failure theory,the primary causes of business cycles are

Accepted Answer

A)  shocks to aggregate demand. 
B)  monetary factors. 
C)  technology shocks. 
D)  waves of self-fulfilling optimism and pessimism. 
A)  shocks to aggregate demand. 
B)  monetary factors. 
C)  technology shocks. 
D)  waves of self-fulfilling optimism and pessimism.

Question 12

A good measure of productivity is

Accepted Answer

A)  the interest rate. 
B)  the inflation rate. 
C)  aggregate output divided by employment. 
D)  the growth rate of aggregate output. 
A)  the interest rate. 
B)  the inflation rate. 
C)  aggregate output divided by employment. 
D)  the growth rate of aggregate output.

Question 13

Asymmetric information is:

Accepted Answer

A)  information revealed by economic agents turns out to be wrong. 
B)  inflation forecasts are systematically to high or too low. 
C)  some economic agents have more information than others. 
D)  the government knows less about the economy than households and firms. 
A)  information revealed by economic agents turns out to be wrong. 
B)  inflation forecasts are systematically to high or too low. 
C)  some economic agents have more information than others. 
D)  the government knows less about the economy than households and firms.

Question 14

Two plausible hypotheses to explain the productivity slowdown are

Accepted Answer

A)  measurement problems and adjustments to new technologies. 
B)  large government budget deficits and large balance of trade deficits. 
C)  globalization of capital markets and reductions in tariffs. 
D)  adjustments to new technologies and failures in the educational system. 
A)  measurement problems and adjustments to new technologies. 
B)  large government budget deficits and large balance of trade deficits. 
C)  globalization of capital markets and reductions in tariffs. 
D)  adjustments to new technologies and failures in the educational system.

Question 15

Primarily,macroeconomists use microeconomic principles to study

Accepted Answer

A)  business cycles and trends in the stock market. 
B)  long-run economic growth and antitrust policies. 
C)  trends in the stock market and long-term economic growth. 
D)  long-run economic growth and business cycles. 
A)  business cycles and trends in the stock market. 
B)  long-run economic growth and antitrust policies. 
C)  trends in the stock market and long-term economic growth. 
D)  long-run economic growth and business cycles.

Question 16

When there is positive inflation

Accepted Answer

A)  the nominal interest rate is approximately equal to the real interest rate. 
B)  the real interest rate is greater than the nominal interest rate. 
C)  the nominal interest rate is greater than the real interest rate. 
D)  the real interest rate is negative. 
A)  the nominal interest rate is approximately equal to the real interest rate. 
B)  the real interest rate is greater than the nominal interest rate. 
C)  the nominal interest rate is greater than the real interest rate. 
D)  the real interest rate is negative.

Question 17

Business cycles are

Accepted Answer

A)  each unique, but all have a single cause. 
B)  each unique and they can have many causes. 
C)  similar, and they all have a single cause. 
D)  similar, but they can have many causes. 
A)  each unique, but all have a single cause. 
B)  each unique and they can have many causes. 
C)  similar, and they all have a single cause. 
D)  similar, but they can have many causes.

Question 18

Which period was not a recession in the United States?

Accepted Answer

A)  1974-1975 
B)  1990-1991 
C)  1984-1985 
D)  2001 
A)  1974-1975 
B)  1990-1991 
C)  1984-1985 
D)  2001

Question 19

A likely explanation for the 2008-2009 recession is

Accepted Answer

A)  an increase in energy prices. 
B)  financial market problems. 
C)  a drastic reduction in government expenses. 
D)  an increase in taxes. 
A)  an increase in energy prices. 
B)  financial market problems. 
C)  a drastic reduction in government expenses. 
D)  an increase in taxes.

Question 20

According to the Lucas critique,changes in economic policy are likely to have important effects on

Accepted Answer

A)  the available amounts of natural resources. 
B)  the behavior of consumers and firms. 
C)  the preferences of consumers. 
D)  none of the above. 
A)  the available amounts of natural resources. 
B)  the behavior of consumers and firms. 
C)  the preferences of consumers. 
D)  none of the above.

Between 1947 and 2011,

The business cycle component of the log of real per-capita GNP is equal to

In the long run,inflation is caused by

In 2011,the per-capita GDP in the United States,in 2005 dollars,was about

Unemployment,at the aggregate level.,

Over the long run,taxes and government expenses have

For macroeconomics,banks

A trade-off between aggregate output and inflation

Which aspect of macroeconomics generates the most controversy?

According to real business cycle theory,the primary causes of business cycles are

According to Keynesian coordination failure theory,the primary causes of business cycles are

A good measure of productivity is

Asymmetric information is:

Two plausible hypotheses to explain the productivity slowdown are

Primarily,macroeconomists use microeconomic principles to study

When there is positive inflation

Business cycles are

Which period was not a recession in the United States?

A likely explanation for the 2008-2009 recession is

According to the Lucas critique,changes in economic policy are likely to have important effects on

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption-Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters

Exam 1: Introduction

Between 1947 and 2011,

The business cycle component of the log of real per-capita GNP is equal to

In the long run,inflation is caused by

In 2011,the per-capita GDP in the United States,in 2005 dollars,was about

Unemployment,at the aggregate level.,

Over the long run,taxes and government expenses have

For macroeconomics,banks

A trade-off between aggregate output and inflation

Which aspect of macroeconomics generates the most controversy?

According to real business cycle theory,the primary causes of business cycles are

According to Keynesian coordination failure theory,the primary causes of business cycles are

A good measure of productivity is

Asymmetric information is:

Two plausible hypotheses to explain the productivity slowdown are

Primarily,macroeconomists use microeconomic principles to study

When there is positive inflation

Business cycles are

Which period was not a recession in the United States?

A likely explanation for the 2008-2009 recession is

According to the Lucas critique,changes in economic policy are likely to have important effects on

Measurement

Business Cycle Measurement

Consumer and Firm Behavior: The Work-Leisure Decision and Profit Maximization

A Closed-Economy One-Period Macroeconomic Model

Search and Unemployment

Economic Growth: Malthus and Solow

Income Disparity Among Countries and Endogenous Growth

A Two-Period Model: The Consumption-Savings Decision and Credit Markets

Credit Market Imperfections: Credit Frictions, Financial Crises, and Social Security

A Real Intertemporal Model with Investment

Money, Banking, Prices, and Monetary Policy

Business Cycle Models with Flexible Prices and Wages

New Keynesian Economics: Sticky Prices

International Trade in Goods and Assets

Money in the Open Economy

Money, Inflation, and Banking

Inflation, the Phillips Curve, and Central Bank Commitment

Filters