Question 1

The topics studied in macroeconomics include:

Accepted Answer

A)  inflation.
B)  unemployment.
C)  economic growth.
D)  inflation, unemployment, and economic growth.

Question 2

Inflation:

Accepted Answer

A)  raises the cost of making purchases.
B)  can result in a decrease in barter transactions.
C)  encourages people to hold cash.
D)  is caused by changes in interest rates.

Question 3

Keynesian economics stressed:

Accepted Answer

A)  the importance of total spending.
B)  the self-correcting power of free markets.
C)  the long run.
D)  that the Depression should run its course to bring down the high cost of living.

Question 4

An open economy:

Accepted Answer

A)  trades goods and services with other countries.
B)  does not regulate its industries.
C)  does not impose taxes on its citizens.
D)  allows free practice of speech and religion.

Question 5

An open economy:

Accepted Answer

A)  trades only with its neighbors.
B)  trades goods but not services or assets with other countries.
C)  does not trade goods, services, or assets with other countries.
D)  trades goods and services with other countries.

Question 6

An economic recovery encompasses all of the following EXCEPT:

Accepted Answer

A)  sustained economic growth.
B)  a short-run increase in aggregate production.
C)  a time of increasing employment.
D)  the end of the business cycle.

Question 7

The alternation between recessions and expansions is known as the:

Accepted Answer

A)  unemployment rate.
B)  long-run economic growth.
C)  business cycle.
D)  macroeconomy.

Question 8

A recession leads to all of the following EXCEPT:

Accepted Answer

A)  higher unemployment.
B)  reduced output.
C)  reduced income and living standards.
D)  higher employment.

Question 9

Use the following to answer questions:
Figure: The Business Cycle 
-(Figure: The Business Cycle)  Look at the figure The Business Cycle. Point B on this graph shows a(n) :

Accepted Answer

A)  peak.
B)  trough.
C)  expansion.
D)  recession.

Question 10

"Macroeconomics is nothing but a simple aggregation of all the microeconomic parts." Do you agree or disagree with this statement?

Accepted Answer

A)  Don't agree; there is a lot more to the study of macroeconomics than the sum of its microeconomic parts.
B)  Agree; macroeconomics is exactly equal to the total of all microeconomic units.
C)  Don't agree; these two disciplines deal with completely independent issues.
D)  Don't agree; microeconomics is an aggregation of all the macroeconomic parts.

Question 11

When overall price levels rise over time, it is referred to as:

Accepted Answer

A)  deflation.
B)  inflation.
C)  an increase in purchasing power.
D)  the consumer price index.

Question 12

During the Great Depression, unemployment rates reached as high as:

Accepted Answer

A)  25%.
B)  50%.
C)  10%.
D)  60%.

Question 13

The business cycle is the long-run alternation between downturns and upturns.

Accepted Answer

A) True 
 B)False

Question 14

Which one of the following measures long-run economic growth?

Accepted Answer

A)  a rise in employment
B)  an increase in the money supply
C)  a sustained increase in the production of goods and services
D)  an increase in the labor force

Question 15

Recessions are periods in which output and employment are falling.

Accepted Answer

A) True 
 B)False

Question 16

In macroeconomics:

Accepted Answer

A)  aggregate data such as real GDP, the price level, and unemployment are analyzed.
B)  individual and firm decisions regarding utility and profit maximization are studied.
C)  long-term growth is not considered to be important.
D)  market intervention from the government is not considered important.

Question 17

Following a trough, real GDP increases.

Accepted Answer

A) True 
 B)False

Question 18

The topics studied in macroeconomics include:

Accepted Answer

A)  inflation.
B)  monopolies.
C)  spillovers, such as pollution.
D)  mergers.

Question 19

When an economy is operating between a trough and a peak of the business cycle, it is in:

Accepted Answer

A)  an expansion.
B)  a contraction.
C)  a short-run condition.
D)  the beginning of a fall in aggregate spending.

Question 20

The most painful consequence of a recession is:

Accepted Answer

A)  rising unemployment.
B)  increasing inflation.
C)  increasing aggregate output.
D)  higher interest rates.

Exam 6: Macroeconomics: the Big Picture

The topics studied in macroeconomics include:

Correct AnswerverifiedShow Answer

The alternation between recessions and expansions is known as the:

Correct AnswerverifiedShow Answer

Keynesian economics stressed:

Correct AnswerverifiedShow Answer

Use the following to answer questions: Figure: The Business Cycle -(Figure: The Business Cycle) Look at the figure The Business Cycle. Point B on this graph shows a(n) :

Correct AnswerverifiedShow Answer

When overall price levels rise over time, it is referred to as:

Correct AnswerverifiedShow Answer

"Macroeconomics is nothing but a simple aggregation of all the microeconomic parts." Do you agree or disagree with this statement?

Correct AnswerverifiedShow Answer

Which one of the following measures long-run economic growth?

Correct AnswerverifiedShow Answer

A recession leads to all of the following EXCEPT:

Correct AnswerverifiedShow Answer

During the Great Depression, unemployment rates reached as high as:

Correct AnswerverifiedShow Answer

The most painful consequence of a recession is:

Correct AnswerverifiedShow Answer

When an economy is operating between a trough and a peak of the business cycle, it is in:

Correct AnswerverifiedShow Answer

An economic recovery encompasses all of the following EXCEPT:

Correct AnswerverifiedShow Answer

Following a trough, real GDP increases.

Correct AnswerverifiedShow Answer

Recessions are periods in which output and employment are falling.

Correct AnswerverifiedShow Answer

In macroeconomics:

Correct AnswerverifiedShow Answer

The business cycle is the long-run alternation between downturns and upturns.

Correct AnswerverifiedShow Answer

Inflation:

Correct AnswerverifiedShow Answer

An open economy:

Correct AnswerverifiedShow Answer

The topics studied in macroeconomics include:

Correct AnswerverifiedShow Answer

An open economy:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified