Question 1

Stabilization policy has helped ameliorate the impact of recessions since the 1950s.

Accepted Answer

A) True 
 B)False

Question 2

Donald Trump's first years in office could be illustrated by an

Accepted Answer

A)   increase in aggregate demand.
B)   increase in aggregate supply.
C)   decrease in aggregate demand.
D)   decrease in aggregate supply.E) All of the above
F) B) and C)

Question 3

During economic fluctuations, individual markets usually move in different directions.

Accepted Answer

A) True 
 B)False

Question 4

Aggregate demand and supply curves have been widely used to analyze the performance of the macroeconomy. Figure 5-3 shows four diagrams that represent different changes in the macroeconomy. Choose the diagram that best represents the situations described in the following questions. Figure 5-3

Which graph in Figure 5-3 best represents the supply-side shock of the 1970s oil crisis?

Accepted Answer

A)   1
B)   2
C)   3
D)   4E) None of the above
F) A) and B)

Question 5

Before the Great Depression of the 1930s, most economists believed that

Accepted Answer

A)   only active government policy could prevent recessions or inflation.
B)   a capitalist economy had a natural tendency to cure recessions or inflation.
C)   a capitalist economy had a natural tendency to inflation.
D)   recessions and depressions were inevitable until the economy broke down completely.E) A) and D)
F) A) and B)

Question 6

In the early 1980s, the economy experienced high unemployment with falling inflation.

Accepted Answer

A) True 
 B)False

Question 7

Figure 5-2

In Figure 5-2, an increase in government spending would cause

Accepted Answer

A)   an outward shift in the aggregate supply curve and an increase in the price level.
B)   an outward shift in the aggregate demand curve and an increase in the price level.
C)   an inward shift of the aggregate demand curve and an increase in the price level.
D)   an inward shift of the aggregate demand curve and a decrease in the price level.E) B) and D)
F) A) and B)

Question 8

You won the lottery in 2006 for $22 million and gave your sister $500,000. Your winning contributed how much to GDP?

Accepted Answer

A)   $500,000
B)   $22 million
C)   $0
D)   $21.5 millionE) B) and C)
F) A) and B)

Question 9

GDP cannot be used for international comparisons because

Accepted Answer

A)   countries differ in the share of economic activity done in organized markets.
B)   countries are similar in the skills of the labor force.
C)   countries differ in population statistics.
D)   countries differ in political structure.E) A) and B)
F) None of the above

Question 10

From 2000 to 2001, the U.S. economy's annual growth rate slowed down abruptly.

Accepted Answer

A) True 
 B)False

Question 11

Tony Stark and Steve Rogers decide to build a new gym, rather than lift weights at home. This decision

Accepted Answer

A)   decreases nominal GDP.
B)   decreases real GDP.
C)   increases GDP.
D)   has no impact on GDP.E) All of the above
F) None of the above

Question 12

The vertical axis of the aggregate demand-aggregate supply model measures the amount of

Accepted Answer

A)   total employment.
B)   total final output.
C)   the price level.
D)   net exports.E) A) and B)
F) None of the above

Question 13

In the years after the Great Recession, the inflation rate has been

Accepted Answer

A)   volatile.
B)   diminishing over time.
C)   stabilized at 0.
D)   relatively low.E) None of the above
F) All of the above

Question 14

Real GDP values current output of goods and services at their current prices.

Accepted Answer

A) True 
 B)False

Question 15

Discuss some of the fundamental differences between microeconomics and macroeconomics.

Accepted Answer

Microeconomics studies the decisions of ...

Question 16

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time. This suggests that the primary cause of the recession was an

Accepted Answer

A)   inward shift of the aggregate demand curve.
B)   outward shift of the aggregate supply curve.
C)   inward shift of the aggregate supply curve.
D)   outward shift of the aggregate demand curve.E) A) and B)
F) B) and D)

Question 17

The Great Depression ended in the United States when

Accepted Answer

A)   the New Deal reforms were initiated by President Roosevelt.
B)   deficit spending ended in 1937.
C)   the United States returned to the gold standard in 1940.
D)   the United States began to mobilize for war in the early 1940s.
E)   the German economy suffered hyperinflation in the 1920s.F) B) and D)
G) A) and D)

Question 18

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

Accepted Answer

An "aggregate" is an abstraction that ma...

Question 19

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is included in GDP?

Accepted Answer

A)   The value of illegally produced goods
B)   The value of housework by a stay-at-home dad
C)   The value of volunteer work done at a local homeless shelter
D)   The cost of government-provided social servicesE) A) and B)
F) None of the above

Exam 21: An Introduction to Macroeconomics

Discuss some of the fundamental differences between microeconomics and macroeconomics.

Correct Answer
verified
Microeconomics studies the decisions of ...
View Answer

You won the lottery in 2006 for $22 million and gave your sister $500,000. Your winning contributed how much to GDP?

Correct Answer
verified

Tony Stark and Steve Rogers decide to build a new gym, rather than lift weights at home. This decision

Correct Answer
verified

During economic fluctuations, individual markets usually move in different directions.

Correct Answer
verified

Before the Great Depression of the 1930s, most economists believed that

Correct Answer
verified

In the early 1980s, the economy experienced high unemployment with falling inflation.

Correct Answer
verified

The Great Depression ended in the United States when

Correct Answer
verified

Figure 5-2 In Figure 5-2, an increase in government spending would cause

Correct Answer
verified

Which of the following is included in GDP?

Correct Answer
verified

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

Correct Answer
verified
An "aggregate" is an abstraction that ma...
View Answer

Stabilization policy has helped ameliorate the impact of recessions since the 1950s.

Correct Answer
verified

In the years after the Great Recession, the inflation rate has been

Correct Answer
verified

The vertical axis of the aggregate demand-aggregate supply model measures the amount of

Correct Answer
verified

Real GDP values current output of goods and services at their current prices.

Correct Answer
verified

Correct Answer
verified

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

Correct Answer
verified

GDP cannot be used for international comparisons because

Correct Answer
verified

From 2000 to 2001, the U.S. economy's annual growth rate slowed down abruptly.

Correct Answer
verified

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time. This suggests that the primary cause of the recession was an

Correct Answer
verified

Donald Trump's first years in office could be illustrated by an

Correct Answer
verified

Exam 21: An Introduction to Macroeconomics

Discuss some of the fundamental differences between microeconomics and macroeconomics.

Correct AnswerverifiedMicroeconomics studies the decisions of ...View AnswerShow Answer

You won the lottery in 2006 for $22 million and gave your sister $500,000. Your winning contributed how much to GDP?

Correct AnswerverifiedShow Answer

Tony Stark and Steve Rogers decide to build a new gym, rather than lift weights at home. This decision

Correct AnswerverifiedShow Answer

During economic fluctuations, individual markets usually move in different directions.

Correct AnswerverifiedShow Answer

Before the Great Depression of the 1930s, most economists believed that

Correct AnswerverifiedShow Answer

In the early 1980s, the economy experienced high unemployment with falling inflation.

Correct AnswerverifiedShow Answer

The Great Depression ended in the United States when

Correct AnswerverifiedShow Answer

Figure 5-2 In Figure 5-2, an increase in government spending would cause

Correct AnswerverifiedShow Answer

Which of the following is included in GDP?

Correct AnswerverifiedShow Answer

What is an aggregate? How is it used in macroeconomics? Give two examples of specific aggregates that are used in the study of macroeconomics.

Correct AnswerverifiedAn "aggregate" is an abstraction that ma...View AnswerShow Answer

Stabilization policy has helped ameliorate the impact of recessions since the 1950s.

Correct AnswerverifiedShow Answer

In the years after the Great Recession, the inflation rate has been

Correct AnswerverifiedShow Answer

The vertical axis of the aggregate demand-aggregate supply model measures the amount of

Correct AnswerverifiedShow Answer

Real GDP values current output of goods and services at their current prices.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Someone who studies the pricing policies of the Microsoft Corporation would be a microeconomist.

Correct AnswerverifiedShow Answer

GDP cannot be used for international comparisons because

Correct AnswerverifiedShow Answer

From 2000 to 2001, the U.S. economy's annual growth rate slowed down abruptly.

Correct AnswerverifiedShow Answer

The recession of 1973-1975 was unusual in that both inflation and unemployment increased at the same time. This suggests that the primary cause of the recession was an

Correct AnswerverifiedShow Answer

Donald Trump's first years in office could be illustrated by an

Correct AnswerverifiedShow Answer

Correct Answer
verified
Microeconomics studies the decisions of ...
View 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
An "aggregate" is an abstraction that ma...
View 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
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Correct Answer
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