Chapter 1--MacroTB - CHAPTER 1 Introduction to...

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1 Introduction to Macroeconomics CHAPTER 1 MULTIPLE-CHOICE 1. Macroeconomics is the study of __________ while microeconomics studies __________. a. the cosmos; particle physics b. the overall performance of an economy; an individual market c. an individual market; the overall performance of an economy d. the overall performance of the economy; the individual firm e. consumer behavior; firm behavior Answer: b. Section: 1.1 2. The three main variables we discuss in the short run are a. economic fluctuations; interest rates; unemployment. b. economic fluctuations; inflation; money. c. economic fluctuations; inflation; unemployment. d. interest rates; money supply; taxes. e. economic fluctuations; interest rates; money. Answer: c. Section: 1.3 3. Macroeconomic is to microeconomics what __________ is to __________. a. cosmology; particle physics b. particle physics; cosmology c. physics; biology d. chemistry; organic chemistry e. biology; zoology Answer: a. Section: 1.1 4. Which of the following does macroeconomics endeavor to answer: i. Why is the typical person in the United States today more than 10 times richer than the typical person a century ago? ii. Why has the unemployment rate been nearly twice as high in Europe as in the United States in recent years? iii. What determines the rate of inflation: What determines how rapidly the overall price level in an economy is increasing? a. i only b. i, ii, and iii c. ii only d. i and ii e. ii and iii Answer: b. Section: 1.1 5. Which of the following does macroeconomics not endeavor to answer: i. Why is the typical person in the United States today more than 10 times richer than the typical person a century ago? ii. Why has the unemployment rate been nearly twice as high in Europe as in the United States in recent years? iii. Why has the price of orange juice risen sharply? a. ii and iii b. i only c. ii only d. i, ii, and iii e. iii only Answer: e. Section:1.1
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2 | Chapter 1 6. Which of the following does macroeconomics endeavor to answer: i. What role does the government play in recessions and booms and in determining the rate of inflation? ii. What causes an increase in the price of Exxon stock? iii.
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Chapter 1--MacroTB - CHAPTER 1 Introduction to...

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