quiz 5ma - a. The production of a car which is not sold in...

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QUIZ 6 “THE REALM OF MACROECONOMICS” 1. Which type of problem is typically not the concern of macroeconomist? a. The effect of taxation on the efficiency of business operations b. The effect of taxation on the growth rate of domestic product c. The effect of taxation on the unemployment rate d. The effect of taxation on the inflation rate 2. A reduction in aggregate demand is likely to lead to: a. An increase in inflation b. An increase in grow domestic product c. An increase in unemployment d. A reduction in unemployment 3. A reduction in aggregate supply is likely to lead to: a. An increase in inflation b. An increase in gross domestic product c. A reduction in unemployment d. A reduction in inflation 4. Among the activities counted in GDP is: a. The purchase of a used car b. The purchase of a new car c. The purchase of newly issued corporate stock d. The purchase of newly produced cocaine 5. Which of these activities is not counted in GDP?
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Unformatted text preview: a. The production of a car which is not sold in the year it is built b. The work done by a broker who buys and sells used cars c. The work done by the chief executive of the countrys largest polluter d. The work done by the volunteer board of the YWCA 6. In comparison with the first half of the twentieth century, in the second half of the century in the U.S.: a. Unemployment and inflation have both been better b. Unemployment and inflation have both been worse c. Unemployment ha been better, but inflation has been worse d. Unemployment has been worse, but inflation better 7. Some economists believe it is appropriate for the government to cut taxes, in order to stimulate aggregate demand, when: a. Unemployment is unacceptably high b. Unemployment is unacceptably low c. Inflation is unacceptably high d. GDP is growing at a rate too fast o be sustainable...
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This note was uploaded on 09/09/2008 for the course ECON 202 taught by Professor Fernandez during the Fall '08 term at University of Louisville.

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quiz 5ma - a. The production of a car which is not sold in...

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