Exam 6: Macroeconomics: the Big Picture

A key insight into macroeconomics is that in the short run the combined effect of individual decisions:

The topics studied in macroeconomics include:

For the past several months, per capita output has increased at a slower and slower rate. Over the same period, the unemployment rate has been falling, but it appears to have leveled off and may soon rise. Where in the business cycle is the economy?

In many countries, economists adopt the rule that a recession is a period of at least _____ during which aggregate output falls.

The point at which a recession ends and the expansion begins is called the:

A depression occurs when:

Monetary policy attempts to affect the overall level of spending by making changes in:

One type of macroeconomic policy is antitrust enforcement.

One of the issues of importance to macroeconomists is:

An increase in the nation's _____ is generally accepted as a long-run indicator of a rising standard of living.

The point on a business cycle when real GDP stops rising and begins falling is a(n):

The United States imports coffee from Brazil and exports cars to Brazil. Is this a macroeconomic or microeconomic issue?

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

One role of government policy is:

Keynesians argue that low levels of spending:

In the United States, recessions are typically associated with a(n):

If the economy grew at 3% this year and average prices increased _____, people would be better off this year than last year.

Changing interest rates is an example of _____ policy.

The onset of the Great Depression:

Macroeconomics entails the study of the: