What would NOT be considered a macroeconomic question?
What determines a university’s cost of offering a new course?
Which question is the most appropriate to the study of macroeconomics?
How does the aggregate price level affect overall spending?
The view that the government should take an active role in the macroeconomy dates to
the Great Depression
The central mission of modern macroeconomics is to prevent
a deep recession like the Great Depression
Keynesian economics stressed
the importance of total spending
If during several months the economy is simultaneously increasing its levels of output and employment, then the economy is in an
An economic expansion in the United States is typically associated with a
falling unemployment rate
Long-run growth is the sustained upward trend in
aggregate output per person over several decades
Long-run economic growth is best measured by
a sustained rise in the production of goods and services
Which of the following statements is TRUE?
The level of saving is important for long-run growth
If workers’ nominal wages have risen by 50% over 10 years and prices have increased by 40% in that same period, then we can safely conclude that the amount of goods and services workers can buy has
Price stability occurs when
the overall cost of living is changing very slowly
A nation whose value of imports exceeds its value of exports is said to have
a trade deficit
One of the issues of importance to macroeconomists is
understanding how living standards change over time
Setting government spending and taxes in an effort to change overall spending in an economy is use of
One normally expects that unemployment increases while aggregate output and aggregate incomes decrease during
If an economy is open
trading with other countries makes up a portion of its economy
The relation between a country’s level of saving and investment
affects its trade balances