Question 1

The average output produced per worker is one way of measuring

Accepted Answer

A)  inflation.
B)  the interest rate.
C)  employment.
D)  productivity.

Question 2

At a business cycle peak,we usually have ________ real Gross Domestic Product.

Accepted Answer

A)  an all-time high level of
B)  an all-time low level of
C)  an historically average level of
D)  accelerating growth of
E)  the maximum growth rate of

Question 3

Our business cycle experiences suggest that a macroeconomic policy designed to lower the average rate of inflation will require ________ in actual real GDP and an accompanying ________ in the unemployment rate.

Accepted Answer

A)  an increase,increase
B)  an increase,decrease
C)  a reduction,increase
D)  a reduction,decrease

Question 4

Between 1900 and 2007,the ratio of actual to natural real GDP hit its low point in

Accepted Answer

A)  1933.
B)  1904.
C)  1944.
D)  1982.

Question 5

The "Big Three" concepts of Macroeconomics are

Accepted Answer

A)  profits,liquidity,and sustainability.
B)  unemployment rate,inflation,and economic growth.
C)  asset rebalancing,markups,and profitability.
D)  federal budget,foreign trade,and quantitative easing. B

Question 6

A low unemployment rate implies that

Accepted Answer

A)  job offers are scarce and inflation is high.
B)  job offers are plentiful and wages are high.
C)  jobs are permanent and job offers are plentiful.
D)  jobs are difficult to find,and wages are low. B

Question 7

Economy with no productivity growth is called the

Accepted Answer

A)  zero-sum society.
B)  zero-growth society.
C)  export-led society.
D)  doomed-to-fail society.

Question 8

Figure 1-2
 
-When the actual real GDP exceeds the natural real GDP as in Figure 1-2 above,we expect to find that unemployment is

Accepted Answer

A)  high and inflation is high.
B)  low and inflation is high.
C)  low and inflation is low.
D)  high and inflation is low.

Question 9

A rising inflation rate tends to help the following types of people:

Accepted Answer

A)  retirees and students with savings accounts.
B)  borrowers and homeowners without mortgages.
C)  homeowners with mortgages and students with loans.
D)  landowners and borrowers.

Question 10

Prior to 1995 productivity growth in Europe was ________ in the United States.

Accepted Answer

A)  higher than
B)  lower than
C)  same as
D)  None of the above

Question 11

Fiscal policy tries to influence target variables by manipulating

Accepted Answer

A)  money supply.
B)  interest rates.
C)  government expenditures.
D)  All of the above.

Question 12

Compared to the US,the unemployment rate in Europe was ________ throughout the 1960s and 1970s and ________ after 1980.

Accepted Answer

A)  higher;lower
B)  lower;higher
C)  lower;remained lower
D)  higher,remained higher

Question 13

Any policy that seeks to influence the level of aggregate demand is called

Accepted Answer

A)  productivity policy.
B)  stabilization policy.
C)  aggregate policy.
D)  employment policy.

Question 14

Macroeconomics focuses on a certain set of variables called

Accepted Answer

A)  micros.
B)  marginals.
C)  partials.
D)  balances.
E)  aggregates.

Question 15

In 1991 the unemployment rate in the United States rose to 7.1 percent.This is ________ the unemployment rate reached in the depths of the Great Depression.

Accepted Answer

A)  about two percentage points more than
B)  roughly equal to
C)  about three percentage points less than
D)  about half of
E)  less than one-third of

Question 16

Much of macroeconomics is concerned with advising governments on ways to ________ business cycles,since it is desirable to ________.

Accepted Answer

A)  amplify,create the greatest cyclical peaks possible
B)  amplify,create deep recessions to cool down the economy
C)  dampen,avoid both very low troughs and very high peaks
D)  dampen,keep the economy at its maximum productive capacity

Question 17

The period of the business cycle which follows the trough is the

Accepted Answer

A)  recession.
B)  expansion.
C)  peak.
D)  All of the above may follow the trough.

Question 18

Inflation tends to redistribute income from

Accepted Answer

A)  savers to borrowers.
B)  borrowers to savers.
C)  homeowners to landowners.
D)  parents to students.

Question 19

Which of the following contributed to the emergence of hyperinflation in Germany in the early 1920s?

Accepted Answer

A)  payment of massive war reparations required by the Versailles Peace Treaty
B)  huge budget deficits financed by printing paper money
C)  decreased desire to hold money on the part of the German people
D)  All of the above D

Question 20

The inflation rate is the

Accepted Answer

A)  measure used to calculate the price level.
B)  measure used to calculate the cost of borrowing money.
C)  percentage increase in the average level of prices.
D)  percentage increase in the average level of wages.

Exam 1: What Is Macroeconomics

The average output produced per worker is one way of measuring

Correct AnswerverifiedShow Answer

At a business cycle peak,we usually have ________ real Gross Domestic Product.

Correct AnswerverifiedShow Answer

Our business cycle experiences suggest that a macroeconomic policy designed to lower the average rate of inflation will require ________ in actual real GDP and an accompanying ________ in the unemployment rate.

Correct AnswerverifiedShow Answer

Between 1900 and 2007,the ratio of actual to natural real GDP hit its low point in

Correct AnswerverifiedShow Answer

The "Big Three" concepts of Macroeconomics are

Correct AnswerverifiedB

A low unemployment rate implies that

Correct AnswerverifiedB

Economy with no productivity growth is called the

Correct AnswerverifiedShow Answer

Figure 1-2 -When the actual real GDP exceeds the natural real GDP as in Figure 1-2 above,we expect to find that unemployment is

Correct AnswerverifiedShow Answer

A rising inflation rate tends to help the following types of people:

Correct AnswerverifiedShow Answer

Prior to 1995 productivity growth in Europe was ________ in the United States.

Correct AnswerverifiedShow Answer

Fiscal policy tries to influence target variables by manipulating

Correct AnswerverifiedShow Answer

Compared to the US,the unemployment rate in Europe was ________ throughout the 1960s and 1970s and ________ after 1980.

Correct AnswerverifiedShow Answer

Any policy that seeks to influence the level of aggregate demand is called

Correct AnswerverifiedShow Answer

Macroeconomics focuses on a certain set of variables called

Correct AnswerverifiedShow Answer

In 1991 the unemployment rate in the United States rose to 7.1 percent.This is ________ the unemployment rate reached in the depths of the Great Depression.

Correct AnswerverifiedShow Answer

Much of macroeconomics is concerned with advising governments on ways to ________ business cycles,since it is desirable to ________.

Correct AnswerverifiedShow Answer

The period of the business cycle which follows the trough is the

Correct AnswerverifiedShow Answer

Inflation tends to redistribute income from

Correct AnswerverifiedShow Answer

Which of the following contributed to the emergence of hyperinflation in Germany in the early 1920s?

Correct AnswerverifiedD

The inflation rate is the

Correct AnswerverifiedShow Answer

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Our business cycle experiences suggest that a macroeconomic policy designed to lower the average rate of inflation will require in actual real GDP and an accompanying in the unemployment rate.

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B

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B

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Compared to the US,the unemployment rate in Europe was throughout the 1960s and 1970s and after 1980.

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Much of macroeconomics is concerned with advising governments on ways to business cycles,since it is desirable to .

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D

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