Exam 6: An Introduction to Macroeconomics

Which of the following statements is true?

If prices of goods and services quickly adjust to demand shocks, then:

The Great Recession occurred in:

Increased optimism about the future will lead to:

If nominal GDP increases from one year to the next, then we know that the economy's output has grown.

Suppose that inventories are rising. We could expect that, in the future:

What impact will a negative demand shock have on the main measures of economic performance?

The opportunity cost of investment is a reduction in future consumption.

Economists use the word investment to refer to the purchase of assets such as stocks, bonds, and real estate.

If consumers become pessimistic, the economy is likely to experience a:

Which of the following is the best example of investment as defined by economists?

What impact will a negative supply shock have on the main measures of economic performance?

The Great Recession of 2007-09 illustrated the situation where a negative demand shock occurred and:

The so-called Great Recession in the U.S.:

Which of the following is the best example of financial investment?

Savings are transferred from savers to borrowers through the following intermediaries, except:

Real gross domestic product is a measure of the:

Because prices are sticky, positive demand shock will lead to:

Decisions about saving and investment are:

In macroeconomic models, prices are assumed to be completely inflexible in: