Exam 20: Macroeconomics- the Big Picture

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

Correct Answer

verified

Show Answer

A) How many people are employed in the economy as a whole?
B) What determines the overall level of prices?
C) What determines the overall trade in goods, services, and financial assets between the United States and the rest of the world?
D) What determines a university's cost of offering a new course?

Correct Answer

verified

Show Answer

Correct Answer

verified

Long-run economic growth is the sustaine...

View Answer

Show Answer

A) changes in the inflation rate.
B) changes in the quantity of money or the interest rate.
C) changes in tax policy or government spending.
D) discretionary regulation of profits and wages.

Correct Answer

verified

Show Answer

A) overall behavior of the economy.
B) individual decision makers.
C) market structures.
D) cost and production decisions by firms.

Correct Answer

verified

Show Answer

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

Correct Answer

verified

Show Answer

A) Long-run growth started during the Renaissance.
B) Long-run growth started in the early 1700s.
C) Peasants in eighteenth-century Europe had a standard of living more than 50 times that of the Egyptian peasants in the age of the pharaohs.
D) Long-run growth is a relatively modern phenomenon.

Correct Answer

verified

Show Answer

A) Should I go to business school or take a job?
B) What determines the overall salary levels paid to workers in a given year?
C) What government policies should be adopted to promote full employment and growth?
D) What determines the level of output for the economy as whole?

Correct Answer

verified

Show Answer

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

Correct Answer

verified

Show Answer

A) Both are good for the economy.
B) Inflation is always good for the economy and deflation is always bad for the economy.
C) Inflation is always bad for the economy and deflation is always good for the economy.
D) Both inflation and deflation can pose problems for the economy.

Correct Answer

verified

Show Answer

A) the role of investment in the macroeconomy.
B) how individual decisions to save more may worsen a recession.
C) how an increase in spending occurs during recessions.
D) irrational behavior on the part of households.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) stagflation.
B) recession.
C) inflation.
D) expansion.

Correct Answer

verified

Show Answer

Correct Answer

verified

During uncertain economic time...

View Answer

Show 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.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show 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

Correct Answer

verified

Show Answer

A) overall prices are increasing, although some may be decreasing.
B) all prices must be increasing.
C) the economy must be contracting.
D) the economy must be producing at full employment.

Correct Answer

verified

Show Answer