Question 1

Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in:​

Accepted Answer

A)  the exchange rate.
B)  the unemployment rate.
C)  fiscal spending.
D)  consumer demand.
E)  the price level.

Question 2

Economic fluctuations:​

Accepted Answer

A)  are linked,but not perfectly synchronized,across countries.
B)  are perfectly synchronized across countries.
C)  in one country are independent of fluctuations in other countries.
D)  in the United States always occur after fluctuations in other developed economies.
E)  in the United States usually occur before fluctuations in other developed economies.

Question 3

The failure of the mercantilism policy and the tax policy during the Great Depression proves that economic policies are meaningless and they do more harm than good.

Accepted Answer

A) True 
 B)False

Question 4

The Keynesian approach to economic policy is also known as:​

Accepted Answer

A)  supply-side economics.
B)  Classical economics.
C)  demand-side economics.
D)  mercantilism.
E)  laissez-faire.

Question 5

Which of the following factors can partly explain the long-term growth in production in the U.S.economy?

Accepted Answer

A)  Trade surpluses and accumulation of precious metals
B)  A gradual but consistent increase in the price level
C)  Growth in population
D)  Improvements in technology
E)  Federal government budget deficits

Question 6

Macroeconomics is a branch of economics that studies:

Accepted Answer

A)  the different costs associated with production.
B)  the price and output decisions made by different industries.
C)  the overall performance of the economy.
D)  the role of a market in determining an efficient outcome.
E)  the role of input suppliers in determining the price and quantity of output.

Question 7

The figure below shows the aggregate demand and supply curves for the U.S.In this figure,which of the following might cause a shift in the aggregate demand curve from AD to AD'?​ ​
Figure 5.3
​

Accepted Answer

A)  An increase in household wealth
B)  A fall in domestic interest rates
C)  An increase in government spending
D)  An appreciation of the dollar relative to other currencies
E)  A decrease in the nation's money supply

Question 8

According to John Maynard Keynes' General Theory of Employment,Interest and Money,the government should _____ in order to get an economy out of a depression.​

Accepted Answer

A)  increase spending
B)  decrease spending
C)  reduce subsidies
D)  increase taxes
E)  allow the economy to correct itself

Question 9

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that the price level changes from _____ when the aggregate supply curve shifts from AS' to AS''.​ ​
Figure 5.3
​

Accepted Answer

A)  4 to 2
B)  2 to 3
C)  2 to 2
D)  3 to 1
E)  2 to 4

Question 10

The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied.

Accepted Answer

A) True 
 B)False

Question 11

The market value of all final goods and services produced in a nation during a particular period is called the:

Accepted Answer

A)  gross domestic product.
B)  net national product.
C)  national income.
D)  gross national product.
E)  gross world product.

Exam 5: Introduction to Macroeconomics

Macroeconomics is a branch of economics that studies:

Correct Answer
verified

The failure of the mercantilism policy and the tax policy during the Great Depression proves that economic policies are meaningless and they do more harm than good.

Correct Answer
verified

Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in:

Correct Answer
verified

The Keynesian approach to economic policy is also known as:

Correct Answer
verified

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that the price level changes from _____ when the aggregate supply curve shifts from AS' to AS''. Figure 5.3

Correct Answer
verified

Which of the following factors can partly explain the long-term growth in production in the U.S.economy?

Correct Answer
verified

The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied.

Correct Answer
verified

Economic fluctuations:

Correct Answer
verified

The market value of all final goods and services produced in a nation during a particular period is called the:

Correct Answer
verified

The figure below shows the aggregate demand and supply curves for the U.S.In this figure,which of the following might cause a shift in the aggregate demand curve from AD to AD'? Figure 5.3

Correct Answer
verified

According to John Maynard Keynes' General Theory of Employment,Interest and Money,the government should _____ in order to get an economy out of a depression.

Correct Answer
verified

Exam 5: Introduction to Macroeconomics

Macroeconomics is a branch of economics that studies:

Correct AnswerverifiedShow Answer

The failure of the mercantilism policy and the tax policy during the Great Depression proves that economic policies are meaningless and they do more harm than good.

Correct AnswerverifiedShow Answer

Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in:​

Correct AnswerverifiedShow Answer

The Keynesian approach to economic policy is also known as:​

Correct AnswerverifiedShow Answer

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that the price level changes from _____ when the aggregate supply curve shifts from AS' to AS''.​ ​ Figure 5.3 ​

Correct AnswerverifiedShow Answer

Which of the following factors can partly explain the long-term growth in production in the U.S.economy?

Correct AnswerverifiedShow Answer

The aggregate supply curve reflects the inverse relationship between the interest rate and the quantity of real GDP supplied.

Correct AnswerverifiedShow Answer

Economic fluctuations:​

Correct AnswerverifiedShow Answer

The market value of all final goods and services produced in a nation during a particular period is called the:

Correct AnswerverifiedShow Answer

The figure below shows the aggregate demand and supply curves for the U.S.In this figure,which of the following might cause a shift in the aggregate demand curve from AD to AD'?​ ​ Figure 5.3 ​

Correct AnswerverifiedShow Answer

According to John Maynard Keynes' General Theory of Employment,Interest and Money,the government should _____ in order to get an economy out of a depression.​

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Economists use the price index to eliminate year-to-year changes in GDP due solely to changes in:

Correct Answer
verified

The Keynesian approach to economic policy is also known as:

Correct Answer
verified

The figure below shows the aggregate demand and supply curves for the U.S.The figure given below shows that the price level changes from _____ when the aggregate supply curve shifts from AS' to AS''. Figure 5.3

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Economic fluctuations:

Correct Answer
verified

Correct Answer
verified

The figure below shows the aggregate demand and supply curves for the U.S.In this figure,which of the following might cause a shift in the aggregate demand curve from AD to AD'? Figure 5.3

Correct Answer
verified

According to John Maynard Keynes' General Theory of Employment,Interest and Money,the government should _____ in order to get an economy out of a depression.

Correct Answer
verified