Exam 6: Macroeconomics: the Big Picture

According to official statistics for the United States, since the Great Depression:

An overall decrease in the price level is called:

Long-run growth is:

Economists have identified several consecutive months of falling employment, and forecasts for the next few months suggest more of the same. The economy is at the _____ stage of the business cycle.

Which question is the most appropriate to the study of MICROECONOMICS?

When economists measure economic growth, they often use:

Use of monetary policy entails changes in:

Long-run growth is the:

A newspaper article documents the closing of a factory and the many jobs that are lost. A separate article describes the rising U.S. unemployment rate. Why is the first article a microeconomic issue and the second article a macroeconomic issue?

One normally expects that unemployment increases while aggregate output and aggregate incomes decrease during:

How the actions of individuals and firms interact to produce a particular economy-wide level of performance is the focus of:

Inflation affects people adversely because:

When an economy is expanding, unemployment tends to _____ and overall prices tend to _____.

An increase in the nation's overall price level is:

With regard to the aggregate price level, economists generally believe:

If wages grew at 5% last year and average prices grew at 3%, then the average worker:

Changing the quantity of money, hence the interest rate, hence overall spending in the economy, is use of _____ policy.

The short-run alternation between economic downturns and recessions, then economic upturns and expansions is known as the _____ cycle.

Which would most likely be a MICROECONOMIC question?

Business cycles are defined by the expansion, contraction, then expansion again of nominal GDP.