Exam 5: Introduction to Macroeconomics

The ________ affecting the supply of money is known as monetary policy.

An expansion is usually associated with rising employment.

Microeconomics is concerned with inflation or deflation, output growth and unemployment.

Before the Great Depression, economists applied microeconomic models to economy-wide problems.

Fiscal policy generally takes the form of regulations specifying the maximum amount by which the money supply can be changed.

A corporate bond is a promissory note issued by a firm when it sells stock.

According to Classical economists, if the quantity of labor supplied exceeds the quantity demanded, there is a

John Maynard Keynes sought to solve the economic problem of the Great Depression, which was the coexistence of

In the circular flow diagram everyone's expenditure is someone else's receipt.

In the United States in 1933, the unemployment rate was approximately

Workers are demanded and supplied in the

Fiscal policies are government policies regarding ________ and ________.

Stagflation occurs when the economy's inflation rate is high and

The Employment Act of 1946 committed the federal government to intervening in the economy to prevent large declines in output and employment.

In the United States in 1933, ________ people were unemployed.

A period during which aggregate output rises is known as a(n)

In a business cycle, a peak represents the end of

Which of the following is not a correct statement?

The following is a correct order in a business cycle: recession, trough, peak, expansion.

Between a peak and a trough, the economy goes through a(n)