Macroeconomics - Chapter 5

40 cards

macro﷯﷯﷯ ﷯﷯﷯﷯ ﷯﷯ ﷯﷯﷯﷯﷯


 
  
Created Sep 4, 2009
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n_sigalo

 

 
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  Side A   Side B
1
1. The ultimate objective of macroeconomics is to a. reduce the unemployment rate b. stabilize...
 
c
2
2. Which of the following statements regarding Gross Domestic Product is not true? a. It...
 
a
3
3. Which of the following is a stock variable? a. business spending on capital...
 
c
4
4 Which of the following best describes a flow (rather than a stock)? a. you own...
 
d
5
5. While economic expansions average about three and one half years in duration, economic contractions...
 
a
6
6. A recession is best defined as a period during which a. the percentage of the...
 
b
7
7. Long-term growth in production can be partially explained by a. trade surpluses...
 
d
8
8. A period of sustained growth of output in the economy is referred to as a(n) a. Expansion b. Contraction c. Peak d. Trough e. Recession
 
a
9
9. A period of sustained decline of output in the economy is known as a(n) a. Expansion b. growth...
 
e
10
10. By a leading economic indicator, economists mean a. an indicator of...
 
a
11
11. When economists refer to the economy’s price level, they mean a. the...
 
c
12
12 Which of the following explains why the aggregate demand curve slopes downward? a. If...
 
a
13
13 Which of the following is true of the aggregate supply curve? a. It portrays...
 
d
14
14. An increase in the price level will cause a. an increase in the quantity of...
 
a
15
15. A decrease in the price level will cause a. an increase in the quantity of...
 
b
16
16. Equilibrium of aggregate supply and aggregate demand is best described as a situation in...
 
c
17
17. Given the following aggregate demand and aggregate supply schedules, determine the equilibrium...
 
e
18
18. If the economy were initially in equilibrium and the aggregate demand curve shifted to...
 
a
19
19. The laissez-faire approach popular before the Great Depression influenced the U.S. government...
 
b
20
20. According to Adam Smith's The Wealth of Nations, in order to get an economy out...
 
e
21
21. Adam Smith's "invisible hand" explains a. why people act in their own best...
 
c
22
22. An increase in the price level a. means that the aggregate demand curve has...
 
b
23
23. An increase in government spending, other things constant, would cause a a. leftward...
 
d
24
24. Which is true of John Maynard Keynes? a. He believed that serious economic...
 
d
25
25. Which of the following best describes the Keynesian approach to economic policy? a. supply-side b. Classical c. demand-side d. Mercantilist e. laissez-faire
 
c
26
26. The Keynesian approach to fiscal policy calls for a. budget deficits during...
 
d
27
27. The Employment Act of 1946 a. guaranteed full employment b. obliged...
 
d
28
28. Fine-tuning the economy means a. making government economic policy more "people...
 
b
29
29. In the 1960s, government policy makers believed that they could a. stabilize...
 
e
30
30. Inflation is a. a rise in the value of money b. a decline in nominal...
 
c
31
31. If spending by the federal government exceeds revenue, a. the price level tends...
 
e
32
32. Suppose the economy is initially in equilibrium and then an energy shock occurs, such as...
 
d
33
33. Stagflation refers to a. a simultaneous reduction in output and the price level b. a...
 
d
34
34. To control inflation, President Nixon a. ordered wage and salary reductions...
 
e
35
35. On an aggregate demand and aggregate supply graph, the stagflation of the 1970s can be...
 
a
36
36. Keynesian policies are ineffective at combating stagflation because stagflation is caused...
 
b
37
37. An increase in aggregate supply will result in a. lower levels of employment b. a...
 
e
38
38. If the government owes $3,500 billion and then borrows $300 billion more this year, a. the...
 
b
39
39. Which of the following statements is correct? a. A budget deficit is a flow...
 
a
40
40. The aim of supply-side economics is to a. increase government spending to stimulate...
 
d


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