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Bmal 590 Week 6-Macroeconomics Exam Questions and Answers
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Bmal 590 Week 6-MacroeconomicsExam Questions and Answers
Microeconomics - Answers -focuses on individual action and how those actions have
consequences for the availability, distribution, and utilization of scarce resources.
Macroeconomics - Answers -examines the economy as a whole.
Monetary Policy - Answers -s the set of tools used by a country's central bank (the
Federal Reserve in the U.S.) to regulate the availability of money in the economy.
Fiscal Policy - Answers -refers to government policies related to taxes and how
resources are allocated among competing priorities - defense, education, infrastructure,
healthcare, and safety and security - to name a few.
Supply side or growth policies - Answers -are those that try to improve aggregate supply
rather than addressing aggregate demand.
An economic recession refers to: - Answers -a period, typically two consecutive
quarters, during which aggregate output declines.
Deflation refers to: - Answers -a decrease in the overall price level.
Macroeconomics is the branch of economics that deals with: - Answers -the economy
as a whole.
The school of economic thought that argues that price and wage rigidities do not
provide the only reasoning for an active macroeconomic policy framework is referred to
as: - Answers -Neo-Keynesians.
The primary driver for the emergence of macroeconomic theory as we know it today
was the failure of: - Answers -the classical model to explain the prolonged existence of
high unemployment during the great depression.
The approach that uses monetary policy to stabilize the economy is known as: -
Answers -fine tuning of demand.
According to Keynesian theory, the level of employment is determined by: - Answers -
the level of aggregate demand for goods and services.
, Assume you are an author and your new book is priced at $9.95. The publisher expects
to sell 5,000 copies at this price. Suppose the publisher decides to offer the book at
$8.95, the publisher can expect to sell: - Answers -more than 5,000 copies.
At a price of $99.95, the manufacturer of a popular herbal supplement is willing to
produce 10,000 packed units of the supplement. At a price of $149.95, it is likely that
the manufacturer would be willing to produce: - Answers -more than 10,000 packed
units.
If ultrabook manufacturers are producing ultrabooks faster than people want to buy
them: - Answers -If ultrabook manufacturers are producing ultrabooks faster than
people want to buy them:
Disposable income is that part of a household's income remaining after the deduction
of: - Answers -income tax.
Total consumption divided by total income would give us: - Answers -the average
propensity to consume.
In which one of the following situations would we be likely to observe an increase in the
equilibrium price and a decrease in the equilibrium quantity? - Answers -If supply falls
even as demand increases and the fall in supply is greater than the increase in demand.
In which one of the following situations would we be likely to observe an increase in
both the equilibrium price and equilibrium quantity? - Answers -When demand and
supply rise and the rise in demand is more than the rise in supply.
Consider the following situation. The price of a good increases and the quantity of the
good exchanged in the market also increases. Which one of the following would be the
most likely explanation? - Answers -There has been an increase in demand.
Assume that the demand for a particular good or service increases. Which one of the
following would represent the most likely consequence? - Answers -Both equilibrium
price and equilibrium quantity increase.
In economics, we refer to a market as being in equilibrium when the market price: -
Answers -is at a level such that there is neither a surplus nor a shortage.
Consider the following situation. The price of a good falls and the quantity of good
exchanged on markets rises. Which one of the following would be the most likely
explanation? - Answers -There has been an increase in supply.
Consider the following situation. The price of a good rises and the quantity of the good
exchanged on markets falls. Which one of the following would represent the most likely
explanation? - Answers -There has been a decrease in supply.
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