Question 1

Macroeconomics is the study of ________ while microeconomics studies ________.

Accepted Answer

A)   the cosmos; particle physics
B)   the overall performance of an economy; an individual market
C)   an individual market; the overall performance of an economy
D)   the overall performance of a single economy; the individual firm
E)   consumer behavior; firm behavior

Question 2

In the long run, we are concerned about the causes of economic fluctuations.

Accepted Answer

A) True 
 B)False

Question 3

When we look at the ________ we are concerned with the ________.

Accepted Answer

A)   short run; causes of economic fluctuations
B)   long run; causes of economic fluctuations
C)   short run; determinants of economic growth
D)   long run; causes of inflation
E)   long run; money supply

Question 4

An exogenous variable is one that is taken as given, that is, a parameter.

Accepted Answer

A) True 
 B)False

Question 5

When we look at the ________ we are concerned with ________.

Accepted Answer

A)   long run; money supply
B)   long run; causes of economic fluctuations
C)   long run; causes of economic growth
D)   long run; causes of inflation
E)   long run; unemployment

Question 6

Which of the following questions should a successful model predict?
i. Why, in general, do Americans have higher incomes than Africans?
ii. How much less unemployment is there during an economic expansion?
iii. Why does the United States have a lower unemployment rate than Europe?

Accepted Answer

A)   i and ii
B)   ii only
C)   iii only
D)   i, ii, and iii
E)   i and iii

Question 7

Which of the following questions should a successful model predict?
i. How do changes in government policies change the labor market?
ii. How does money supply influence inflation?
iii. What is the relationship between inflation and unemployment?

Accepted Answer

A)   iii only
B)   ii only
C)   i, ii, and iii
D)   i and ii
E)   i and iii

Question 8

The three main variables we discuss in the short run are:

Accepted Answer

A)   economic fluctuations; interest rates; unemployment
B)   economic fluctuations; inflation; money
C)   economic fluctuations; inflation; unemployment
D)   interest rates; money supply; taxes
E)   economic fluctuations; interest rates; money

Question 9

Income per person began at ________ in 1870 and ________ over a factor of 15 to ________ in 2012.

Accepted Answer

A)   $2,500; rose; $35,000
B)   $2,800; rose; $44,000
C)   $2,800; rose; $100,000
D)   $44,000; fell; $3,500
E)   $40,000; fell; $2,500

Question 10

Consider the following model of the labor market:
Labor supply:  L5=1+wL ^ { 5 } = 1 + wL5=1+w 
Labor demand:  Ld=11−wL ^ { d } = 11 - wLd=11−w 
The value of the equilibrium quantity of labor, L, and wage, w, are:

Accepted Answer

A)    L∗L ^ { * }L∗  = 44/5;  w∗w ^ { * }w∗  = 1/5
B)    L∗L ^ { * }L∗  = 5;  w∗w ^ { * }w∗  = 6
C)    L∗L ^ { * }L∗  = 6;  w∗w ^ { * }w∗  = 5
D)    L∗L ^ { * }L∗  = 6;  w∗w ^ { * }w∗  = 6
E)   Not enough information is given.

Question 11

These four steps, and in the following order, are used to study macroeconomic behavior:
(1) document the facts;
(2) develop a model;
(3) compare the predictions of the model to the original facts;
(4) use the model to make other predictions that eventually may be tested.

Accepted Answer

A) True 
 B)False

Question 12

What are the steps macroeconomists use to analyze the economy?

Accepted Answer

a) Document the problem, identify and as...

Question 13

Which of the following does macroeconomics endeavor to answer?
i. Why is the typical person in the United States today more than ten times richer than the typical person a century ago?
ii. Why has the unemployment rate been nearly twice as high in Europe as in the United States in recent years?
iii. What determines the rate of inflation? What determines how rapidly the overall price level in an economy increases?

Accepted Answer

A)   i only
B)   i, ii, and iii
C)   ii only
D)   i and ii
E)   ii and iii

Question 14

Describe the differences between the long and short run.

Accepted Answer

The short run is concerned with the caus...

Question 15

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

Accepted Answer

A)   (1)  document the facts; (2)  develop a model; (3)  compare the predictions of the model to the original facts; (4)  use the model to make other predictions that may eventually be tested
B)   (1)  document the facts; (2)  use the model to make other predictions that may eventually be tested; (3)  compare the predictions of the model to the original facts; (4)  develop a model
C)   (1)  compare the predictions of the model to the original facts; (2)  develop a model; (3)  document the facts; (4)  use the model to make other predictions that may eventually be tested
D)   (1)  develop a model; (2)  document the facts; (3)  compare the predictions of the model to the original facts; (4)  use the model to make other predictions that may eventually be tested
E)   None of the above answers are correct.

Exam 1: Introduction to Macroeconomics

What are the steps macroeconomists use to analyze the economy?

Correct Answer
verified
a) Document the problem, identify and as...
View Answer

Which of the following questions should a successful model predict? i. How do changes in government policies change the labor market? ii. How does money supply influence inflation? iii. What is the relationship between inflation and unemployment?

Correct Answer
verified

Which of the following questions should a successful model predict? i. Why, in general, do Americans have higher incomes than Africans? ii. How much less unemployment is there during an economic expansion? iii. Why does the United States have a lower unemployment rate than Europe?

Correct Answer
verified

In the long run, we are concerned about the causes of economic fluctuations.

Correct Answer
verified

Consider the following model of the labor market: Labor supply: $L ^ { 5 } = 1 + w$ Labor demand: $L ^ { d } = 11 - w$ The value of the equilibrium quantity of labor, L, and wage, w, are:

Correct Answer
verified

An exogenous variable is one that is taken as given, that is, a parameter.

Correct Answer
verified

The three main variables we discuss in the short run are:

Correct Answer
verified

These four steps, and in the following order, are used to study macroeconomic behavior: (1) document the facts; (2) develop a model; (3) compare the predictions of the model to the original facts; (4) use the model to make other predictions that eventually may be tested.

Correct Answer
verified

Macroeconomics is the study of while microeconomics studies .

Correct Answer
verified

When we look at the we are concerned with .

Correct Answer
verified

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

Correct Answer
verified

Income per person began at in 1870 and over a factor of 15 to in 2012.

Correct Answer
verified

When we look at the we are concerned with the .

Correct Answer
verified

Describe the differences between the long and short run.

Correct Answer
verified
The short run is concerned with the caus...
View Answer

Correct Answer
verified

Exam 1: Introduction to Macroeconomics

What are the steps macroeconomists use to analyze the economy?

Correct Answerverifieda) Document the problem, identify and as...View AnswerShow Answer

Which of the following questions should a successful model predict? i. How do changes in government policies change the labor market? ii. How does money supply influence inflation? iii. What is the relationship between inflation and unemployment?

Correct AnswerverifiedShow Answer

Which of the following questions should a successful model predict? i. Why, in general, do Americans have higher incomes than Africans? ii. How much less unemployment is there during an economic expansion? iii. Why does the United States have a lower unemployment rate than Europe?

Correct AnswerverifiedShow Answer

In the long run, we are concerned about the causes of economic fluctuations.

Correct AnswerverifiedShow Answer

Consider the following model of the labor market: Labor supply: L5=1+wL ^ { 5 } = 1 + wL5=1+w Labor demand: Ld=11−wL ^ { d } = 11 - wLd=11−w The value of the equilibrium quantity of labor, L, and wage, w, are:

Correct AnswerverifiedShow Answer

An exogenous variable is one that is taken as given, that is, a parameter.

Correct AnswerverifiedShow Answer

The three main variables we discuss in the short run are:

Correct AnswerverifiedShow Answer

These four steps, and in the following order, are used to study macroeconomic behavior: (1) document the facts; (2) develop a model; (3) compare the predictions of the model to the original facts; (4) use the model to make other predictions that eventually may be tested.

Correct AnswerverifiedShow Answer

Macroeconomics is the study of ________ while microeconomics studies ________.

Correct AnswerverifiedShow Answer

When we look at the ________ we are concerned with ________.

Correct AnswerverifiedShow Answer

Which of the following lists the four steps we use to study macroeconomic behavior in the correct order?

Correct AnswerverifiedShow Answer

Income per person began at ________ in 1870 and ________ over a factor of 15 to ________ in 2012.

Correct AnswerverifiedShow Answer

When we look at the ________ we are concerned with the ________.

Correct AnswerverifiedShow Answer

Describe the differences between the long and short run.

Correct AnswerverifiedThe short run is concerned with the caus...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
a) Document the problem, identify and as...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Consider the following model of the labor market: Labor supply: $L ^ { 5 } = 1 + w$ Labor demand: $L ^ { d } = 11 - w$ The value of the equilibrium quantity of labor, L, and wage, w, are:

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Macroeconomics is the study of while microeconomics studies .

Correct Answer
verified

When we look at the we are concerned with .

Correct Answer
verified

Correct Answer
verified

Income per person began at in 1870 and over a factor of 15 to in 2012.

Correct Answer
verified

When we look at the we are concerned with the .

Correct Answer
verified

Correct Answer
verified
The short run is concerned with the caus...
View Answer

Correct Answer
verified