Question 1

Macroeconomics is the study of

Accepted Answer

A)  the economic issues which affect individual well-being and individual firms' profit levels.
B)  the economic issues which affect foreign and domestic prices of related goods and services.
C)  inflation and poverty at the level of the household.
D)  the economic issues which affect the nation's total income,employment,and output.

Question 2

Immediately following a business cycle "peak" comes a

Accepted Answer

A)  "trough."
B)  "recession."
C)  "expansion."
D)  "recurrence."

Question 3

The recession of 1990-1992 ________ the trend set over 1965-1990 of ________ unemployment rates at each successive cyclical trough.

Accepted Answer

A)  continued,lower
B)  continued,higher
C)  broke,lower
D)  broke,higher

Question 4

In an economy where actual real GDP is always equal to the natural real GDP,inflation

Accepted Answer

A)  settles down to zero percent.
B)  is at the same rate as GDP growth.
C)  is constant at a rate that can be low or high.
D)  fluctuates around an average of zero percent.

Question 5

Approaching a business cycle peak,actual real GDP ________ natural real GDP,which causes inflation to ________.

Accepted Answer

A)  exceeds,remain constant
B)  exceeds,accelerate
C)  is less than,decelerate
D)  equals,accelerate
E)  equals,remain constant

Question 6

Going from a closed to an open economy ________ macroeconomic policymaking,especially now that exchange rates are ________.

Accepted Answer

A)  complicates,flexible
B)  complicates,fixed
C)  simplifies,flexible
D)  simplifies,fixed

Question 7

Figure 1-2
 
-The "zero sum" society is

Accepted Answer

A)  a society that has reached its limit in population growth and has placed quotas on its birth rate.
B)  a society where the rate of growth of GDP minus the inflation rate equals zero.
C)  a society in which the fluctuations of GDP around the natural level of output sum to zero.
D)  a society with no productivity growth in which any additional good enjoyed by one person requires that something be taken away from someone else.

Question 8

Political incumbents often gain or lose re-election because of a strong or weak economy.Which of the following is an exception to that rule?

Accepted Answer

A)  Al Gore
B)  George H.W.Bush
C)  Jimmy Carter
D)  Herbert Hoover

Question 9

By participating in international financial markets,a nation can finance its government budget deficit in part by ________,which ________ the link between the nation's deficit and its internal private investment.

Accepted Answer

A)  buying foreign assets,strengthens
B)  buying foreign assets,weakens
C)  selling assets to foreigners,strengthens
D)  selling assets to foreigners,weakens

Question 10

When actual real GDP is equal to the natural real GDP,the unemployment rate is

Accepted Answer

A)  zero.
B)  at its "natural" rate.
C)  accelerating.
D)  decelerating.

Question 11

Figure 1-1
 
-When the actual unemployment rate is likely to exceed the natural rate of unemployment,as in the time intervals between t1 and t2 and t3 and t4 in Figure 1-1 above,we can expect that

Accepted Answer

A)  inflation is speeding up and real GDP is likely to exceed natural GDP.
B)  inflation is slowing down and real GDP is likely to fall below natural GDP.
C)  inflation is speeding up and natural GDP is likely to exceed real GDP.
D)  inflation is slowing down and real GDP is likely to exceed natural GDP.

Exam 1: What Is Macroeconomics

Going from a closed to an open economy macroeconomic policymaking,especially now that exchange rates are .

Correct Answer
verified

Immediately following a business cycle "peak" comes a

Correct Answer
verified

When actual real GDP is equal to the natural real GDP,the unemployment rate is

Correct Answer
verified

Macroeconomics is the study of

Correct Answer
verified

The recession of 1990-1992 the trend set over 1965-1990 of unemployment rates at each successive cyclical trough.

Correct Answer
verified

By participating in international financial markets,a nation can finance its government budget deficit in part by ,which the link between the nation's deficit and its internal private investment.

Correct Answer
verified

Figure 1-1 -When the actual unemployment rate is likely to exceed the natural rate of unemployment,as in the time intervals between t1 and t2 and t3 and t4 in Figure 1-1 above,we can expect that

Correct Answer
verified

Political incumbents often gain or lose re-election because of a strong or weak economy.Which of the following is an exception to that rule?

Correct Answer
verified

Approaching a business cycle peak,actual real GDP natural real GDP,which causes inflation to .

Correct Answer
verified

Figure 1-2 -The "zero sum" society is

Correct Answer
verified

In an economy where actual real GDP is always equal to the natural real GDP,inflation

Correct Answer
verified

Exam 1: What Is Macroeconomics

Going from a closed to an open economy ________ macroeconomic policymaking,especially now that exchange rates are ________.

Correct AnswerverifiedShow Answer

Immediately following a business cycle "peak" comes a

Correct AnswerverifiedShow Answer

When actual real GDP is equal to the natural real GDP,the unemployment rate is

Correct AnswerverifiedShow Answer

Macroeconomics is the study of

Correct AnswerverifiedShow Answer

The recession of 1990-1992 ________ the trend set over 1965-1990 of ________ unemployment rates at each successive cyclical trough.

Correct AnswerverifiedShow Answer

By participating in international financial markets,a nation can finance its government budget deficit in part by ________,which ________ the link between the nation's deficit and its internal private investment.

Correct AnswerverifiedShow Answer

Figure 1-1 -When the actual unemployment rate is likely to exceed the natural rate of unemployment,as in the time intervals between t1 and t2 and t3 and t4 in Figure 1-1 above,we can expect that

Correct AnswerverifiedShow Answer

Political incumbents often gain or lose re-election because of a strong or weak economy.Which of the following is an exception to that rule?

Correct AnswerverifiedShow Answer

Approaching a business cycle peak,actual real GDP ________ natural real GDP,which causes inflation to ________.

Correct AnswerverifiedShow Answer

Figure 1-2 -The "zero sum" society is

Correct AnswerverifiedShow Answer

In an economy where actual real GDP is always equal to the natural real GDP,inflation

Correct AnswerverifiedShow Answer

Going from a closed to an open economy macroeconomic policymaking,especially now that exchange rates are .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The recession of 1990-1992 the trend set over 1965-1990 of unemployment rates at each successive cyclical trough.

Correct Answer
verified

By participating in international financial markets,a nation can finance its government budget deficit in part by ,which the link between the nation's deficit and its internal private investment.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Approaching a business cycle peak,actual real GDP natural real GDP,which causes inflation to .

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified