Question 1

The term depression best describes

Accepted Answer

A)  all of the recessions occurring after World War II except for the 1990-1991 recession.
B)  all of the recessions occurring after World War II including the 1990-1991 recession.
C)  all of the recessions that have ever occurred.
D)  the 1990-1991 recession.
E)  the recessions that occurred in 1920-1921,1929-1933,and 1937-1938.F) B) and C)
G) A) and C)

Question 2

Low and stable inflation

Accepted Answer

A)  is important in order to have economic growth,since inflation and growth are positively correlated.
B)  is important in order to have economic growth,since inflation and growth are negatively correlated.
C)  is not important in order to have economic growth.
D)  is important in order to have economic growth,since economic growth and inflation are not correlated.
E)  is not important in order to have economic growth because there is a positive correlation between economic growth and inflation.F) A) and B)
G) A) and E)

Question 3

If real GDP is growing at a slower rate than the growth rate of population,

Accepted Answer

A)  real GDP must be growing more slowly than real GDP per capita.
B)  real GDP must be growing faster than real GDP per capita.
C)  real GDP per capita must be negative.
D)  real GDP per capita must be increasing.
E)  None of theseF) C) and D)
G) A) and B)

Question 4

During the Great Depression,the unemployment rate

Accepted Answer

A)  fell to 1 percent.
B)  rose to 10.4 percent.
C)  rose to over 25 percent.
D)  fell to 0 percent.
E)  rose to over 50 percent.F) A) and B)
G) A) and E)

Question 5

What is economic growth theory? What does it seek to distinguish,and why is it difficult to do this?

Accepted Answer

Economic growth theory attempts to expla...

Question 6

Which of the following trends were   not‾\underline{	ext{  not}} not​   observed in the 1980-2006 period?

Accepted Answer

A)  China saw production per capita of its citizens increase significantly.
B)  India saw production per capita of its citizens increase significantly.
C)  Sub-Saharan African countries experienced a dramatic expansion of their economies.
D)  After the recession in 1981-1982,the United States experienced two decades of almost continuous economic growth,with only minor recessions. E) A) and B)
F) A) and C)

Question 7

The unemployment rate in the United States is zero unless the economy is in a recession.

Accepted Answer

A) True 
 B)False

Question 8

To keep the real interest rate from changing by a large amount as inflation rises,the nominal interest rate has to increase with inflation.

Accepted Answer

A) True 
 B)False

Question 9

The increase in U.S.production over the past 40 years

Accepted Answer

A)  equals Japan's increase in production over the same period of time.
B)  equals Germany's increase in production over the same period of time.
C)  is less than the increase in production in either Germany or Japan.
D)  is larger than the sum of Germany's and Japan's current real GDP.
E)  equals the sum of both Japan's and Germany's increase in production over the same period of time.F) C) and D)
G) B) and E)

Question 10

Does it make a difference if the rate of growth in real GDP per capita changes by less than a percentage point? Justify your answer using evidence from U.S.experience.

Accepted Answer

Small differences in economic growth can...

Question 11

Capital,as defined in the text,is the total amount of money available to produce the goods and services.

Accepted Answer

A) True 
 B)False

Question 12

Recessions in the United States have become less severe between 1980 and 2005.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following best describes the behavior of real GDP in the United States?

Accepted Answer

A)  A long-term downward trend and more pronounced economic fluctuations in recent times
B)  A long-term downward trend and less pronounced economic fluctuations in recent times
C)  A long-term upward trend and more pronounced economic fluctuations in recent times
D)  A long-term upward trend and less pronounced economic fluctuations in recent timesE) A) and D)
F) All of the above

Question 14

Suppose you have $1,000,which you can put in two different types of accounts at a bank.One account pays interest of 9 percent per year; the other pays an interest rate of 3 percent per year plus the rate of inflation.Calculate the amount of money you will have at the end of one year if the inflation rate is 5 percent.What is the real rate of return in each case? Which account would you prefer if you expected inflation to be 8 percent?

Accepted Answer

At the end of one year,you would have $1...

Question 15

Which of the following is not a determinant of aggregate supply capability?

Accepted Answer

A)  The supply of labor
B)  Computers
C)  Aggregate demand
D)  The amount of factories in the economy
E)  Available know-howF) None of the above
G) B) and D)

Question 16

The most recent recession officially started in

Accepted Answer

A)  December 2007.
B)  March 2001.
C)  March 2002.
D)  November 2006.
E)  March 2006.F) C) and E)
G) B) and E)

Question 17

Economists generally agree on the cause of the recession that began in 1990.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true?

Accepted Answer

A)  Interest rates decline before each recession.
B)  Interest rates rise before each recession.
C)  Changes in interest rates are not correlated with the ups and downs of the economy.
D)  There are no long-term trends in interest rates.
E)  There is only one interest rate.F) None of the above
G) A) and E)

Question 19

According to the textbook,which of the following is one of the most important developments of the period between 2007 and 2009?

Accepted Answer

A)  The rapid economic growth of countries in the European Monetary Union
B)  The Great Recession occurred in the United States
C)  The dissolution of the Federal Reserve as the central bank of the United States
D)  The Great Depression as a global phenomenonE) All of the above
F) None of the above

Question 20

What are the predicted short-term and long-term economic effects of the Japanese earthquake in 2011 on the Japanese economy?

Accepted Answer

According to the theory of economic fluc...

Exam 17: Macroeconomics: the Big Picture

What are the predicted short-term and long-term economic effects of the Japanese earthquake in 2011 on the Japanese economy?

Correct Answer
verified
According to the theory of economic fluc...
View Answer

The most recent recession officially started in

Correct Answer
verified

Economists generally agree on the cause of the recession that began in 1990.

Correct Answer
verified

Which of the following statements is true?

Correct Answer
verified

Correct Answer
verified
At the end of one year,you would have $1...
View Answer

Which of the following best describes the behavior of real GDP in the United States?

Correct Answer
verified

The increase in U.S.production over the past 40 years

Correct Answer
verified

According to the textbook,which of the following is one of the most important developments of the period between 2007 and 2009?

Correct Answer
verified

What is economic growth theory? What does it seek to distinguish,and why is it difficult to do this?

Correct Answer
verified
Economic growth theory attempts to expla...
View Answer

Which of the following trends were $\underline{\text{ not}}$ observed in the 1980-2006 period?

Correct Answer
verified

The term depression best describes

Correct Answer
verified

To keep the real interest rate from changing by a large amount as inflation rises,the nominal interest rate has to increase with inflation.

Correct Answer
verified

Which of the following is not a determinant of aggregate supply capability?

Correct Answer
verified

Does it make a difference if the rate of growth in real GDP per capita changes by less than a percentage point? Justify your answer using evidence from U.S.experience.

Correct Answer
verified
Small differences in economic growth can...
View Answer

Low and stable inflation

Correct Answer
verified

The unemployment rate in the United States is zero unless the economy is in a recession.

Correct Answer
verified

Capital,as defined in the text,is the total amount of money available to produce the goods and services.

Correct Answer
verified

Recessions in the United States have become less severe between 1980 and 2005.

Correct Answer
verified

During the Great Depression,the unemployment rate

Correct Answer
verified

If real GDP is growing at a slower rate than the growth rate of population,

Correct Answer
verified

Exam 17: Macroeconomics: the Big Picture

What are the predicted short-term and long-term economic effects of the Japanese earthquake in 2011 on the Japanese economy?

Correct AnswerverifiedAccording to the theory of economic fluc...View AnswerShow Answer

The most recent recession officially started in

Correct AnswerverifiedShow Answer

Economists generally agree on the cause of the recession that began in 1990.

Correct AnswerverifiedShow Answer

Which of the following statements is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedAt the end of one year,you would have $1...View AnswerShow Answer

Which of the following best describes the behavior of real GDP in the United States?

Correct AnswerverifiedShow Answer

The increase in U.S.production over the past 40 years

Correct AnswerverifiedShow Answer

According to the textbook,which of the following is one of the most important developments of the period between 2007 and 2009?

Correct AnswerverifiedShow Answer

What is economic growth theory? What does it seek to distinguish,and why is it difficult to do this?

Correct AnswerverifiedEconomic growth theory attempts to expla...View AnswerShow Answer

Which of the following trends were not‾\underline{\text{ not}} not​ observed in the 1980-2006 period?

Correct AnswerverifiedShow Answer

The term depression best describes

Correct AnswerverifiedShow Answer

To keep the real interest rate from changing by a large amount as inflation rises,the nominal interest rate has to increase with inflation.

Correct AnswerverifiedShow Answer

Which of the following is not a determinant of aggregate supply capability?

Correct AnswerverifiedShow Answer

Does it make a difference if the rate of growth in real GDP per capita changes by less than a percentage point? Justify your answer using evidence from U.S.experience.

Correct AnswerverifiedSmall differences in economic growth can...View AnswerShow Answer

Low and stable inflation

Correct AnswerverifiedShow Answer

The unemployment rate in the United States is zero unless the economy is in a recession.

Correct AnswerverifiedShow Answer

Capital,as defined in the text,is the total amount of money available to produce the goods and services.

Correct AnswerverifiedShow Answer

Recessions in the United States have become less severe between 1980 and 2005.

Correct AnswerverifiedShow Answer

During the Great Depression,the unemployment rate

Correct AnswerverifiedShow Answer

If real GDP is growing at a slower rate than the growth rate of population,

Correct AnswerverifiedShow Answer

Correct Answer
verified
According to the theory of economic fluc...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
At the end of one year,you would have $1...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Economic growth theory attempts to expla...
View Answer

Which of the following trends were $\underline{\text{ not}}$ observed in the 1980-2006 period?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Small differences in economic growth can...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified