Exam 6: Macroeconomics: the Big Picture

The view that the government should take an active role in the macroeconomy dates to:

When an economy's overall production grows faster than its population, it is undergoing:

Fiscal policy entails:

Use the following to answer questions: Figure: The Business Cycle -(Figure: The Business Cycle) Look at the figure The Business Cycle. The movement from point B to C is called a(n):

You read a newspaper article that says the unemployment rate rose this month. Are we in a recession? Explain.

In the long run the overall price level is mainly determined by:

In a typical business cycle recession, the unemployment rate rises and the inflation rate falls. Explain these two trends.

Setting interest rates and the money supply in an effort to change overall spending in is use of:

Monetary policy attempts to affect the overall level of spending through:

A nation whose value of imports exceeds its value of exports is said to have:

Which of the following is TRUE?

If a country sells more goods and services to the rest of the world than it purchases from the other countries, then the country has a:

Which of the following areas is most likely to suggest a limited role for government?

Per capita economic growth is:

The purpose of macroeconomic policy is to:

A contraction in the business cycle is:

Monetary and fiscal policy are tools to reduce the severity of recessions.

Deflation:

Long-run economic growth is best measured by:

If all of the households and businesses start saving more during economic hard times, then aggregate income will fall, hurting everyone in the economy. This is known as: