question

An economic recovery that produces too few jobs to significantly reduce the unemployment rate is known as a(n):

answer

Jobless Recovery

question

The study of macroeconomics as a specific discipline is due primarily to:

answer

John Maynard Keynes

question

During a typical economic recovery:

answer

Unemployment Drops

question

Alternating periods of macroeconomic expansion and contraction are known as:

answer

Business Cycles

question

When a recession gets under way:

answer

firms start to lay off workers to reduce costs

question

According to the circular flow model, the value of the household sector and the value of the business sector will:

answer

always be equal

question

A simple circular flow diagram show that the factors of production are:

answer

purchased by the businesses

question

The two approaches used by government in estimating GDP are:

answer

expenditure and income

question

Gross domestic product is the total market value of all:

answer

final goods and services produced in the United States by labor and property

question

The twin perils of the modern macroeconomy are said to be:

answer

inflation and unemployment

question

Arlina got a 5% raise while the rate of inflation was 6%. Arlina's standard of living:

answer

fell by about 1%

question

_____ is a reduction in the rate of inflation:

answer

Disinflation

question

The conversion formula for the current dollar value to constant dollar value is:

answer

nominal*(base year index/current year index)

question

Retirees and creditors:

answer

are hurt by inflation because their purchasing power drops

question

Lexie works Monday to Friday from 4pm to 6pm, in the after school program at a local elementary school. She began looking for a full time job last week and has already scheduled three job interviews. According to the Bureau of Labor Statistics, Lexie is:

answer

employed

question

In 2012, the group with the highest unemployment rate in the US was:

answer

African Americans

question

The mortgage crisis caused a lot of consumers to stop spending money. The decrease in spending led to a decrease in production. Which type of unemployment resulted?

answer

cyclical

question

If the growth rate in an economy is 3.5% then its GDP will double in about:

answer

20 years

question

If a country's population increases at a higher rate than the growth in its real GDP:

answer

the standard of living in the country has declined

question

If output equals A*(5K + 2L), what is output if A equals 2,000, capital equals 10, and labor equals 100?

answer

500,000

question

Schumpter's term CREATIVE DESTRUCTION describes the:

answer

innovative dynamism of capitalism

question

the higher the productivity of a nation, the:

answer

higher is its standard of living

question

Labor productivity is a major determinant of:

answer

living standards

question

According to Malthus, a fixed quantity of land and a growing human population will eventually produce:

answer

a stationary state in which growth will cease

question

When the government records a deed showing that ownership of a piece of property has passed from one party to another, it is acting in its role to promote economic by:

answer

ensuring a stable legal system

question

The historical evidence shows that:

answer

a country's degree of freedom is related to the level of economic growth

question

Which of the following did classical economists believe would happen if the product markets accrued surpluses?

answer

wage rates would fall

question

in the Keynesian aggregate expenditure model, which variable is assumed to be fixed?

answer

the price level

question

If disposable income is 3,000 and saving is 1,200, how much is consumption?

answer

1800

question

In the Keynesian model, the principal determinant of saving is:

answer

income

question

If income is 50,000, consumption is 47,500, and saving is 2,500, then the marginal propensity to consume is:

answer

there is not enough info to answer the question

question

Personal consumption expenditures:

answer

can be found by subtracting saving from disposable income

question

As income increases, consumption ________________

answer

increases at a slower rate

question

If the stock marker collapses, consumption will:

answer

decrease because people fell less wealthy

question

Firms decide how much to invest by comparing the rate of return on their projects with:

answer

the interest rate

question

John Maynard Keynes focused on ______ to explain how the economy reaches short-term equilibrium employment, output, and income

answer

aggregate spending

question

According to Keynes, what determines the level of employment and income?

answer

aggregate expenditures

question

The collapse of home values that began in 2008 led to ______ in Americans' saving rates, shifting aggregate demand to the ______

answer

an increase; left

question

The ___________ effect is a reason for the negative slope of the aggregate demand curve

answer

interest rate

question

Which of the following events causes a decrease in aggregate demand?

answer

taxes increase

question

The aggregate demand curve displays:

answer

real GDP demanded at various price levels

question

When government spending rises:

answer

aggregate demand rises

question

As the aggregate price level declines:

answer

there is a movement down along the aggregate demand curve

question

If Europe has a large increase in income, what will happen in the United States?

answer

The aggregate demand curve will shift to the right

question

The _______ shows the amount of output that firms are willing to produce at various price levels?

answer

aggregate supply curve

Macroeconomics Exam 2 Answers – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards