Principles of Macroeconomics: A Study Guide

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Chapter 5: Introduction to Macroeconomics True or False
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1. Macroeconomics is concerned with the sum, or aggregate, of individual decisions. TRUE FALSE 2. Macroeconomics was born out of an effort to explain the Great Depression of the 1930s. TRUE FALSE 3. The topics of primary concern in macroeconomics include the determination of prices, interest rates, and exchange rates. TRUE FALSE
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4. Fiscal policy refers to using the money supply to influence the rate of economic activity. TRUE FALSE 5. Supply-side policies are policies that focus on increasing the growth rate of long-run
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Unformatted text preview: output. TRUE FALSE 6. Exports represent an outflow of income. TRUE FALSE 7. Everybody's expenditure is someone else's receipt. TRUE FALSE 8. We cannot possibly understand aggregate behavior without knowledge of individual behavior. TRUE FALSE 9. The logic underlying the aggregate supply and demand curves is more complex than the logic behind individual market supply and demand curves. TRUE FALSE 10. Since the 1970s, the U.S. economy has seen large fluctuations in the rate of inflation. TRUE FALSE...
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