economics 101 - false 1. Macroeconomics focuses on: A) the...

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Unformatted text preview: false 1. Macroeconomics focuses on: A) the economy as a whole. B) individual decisions. C) wages. D) the allocation of scarce resources. 2. The topics studied in macroeconomics include: d B) unemployment. C) economic growth. D) all of the above. 3. In the paradox of thrift: A) firms that are pessimistic about the future lay off the most saving-conscientious workers. B) when families and business are feeling pessimistic about the future, they spend more today. C) increased saving by individuals increases their chances of becoming unemployed. D) profligate behavior during economic tough times has large negative consequences for society. 4. In contrast to the conclusions drawn from microeconomics, many economists would argue that in macroeconomics, government: A) control of rent prices increases overall economic activity. B) intervention in markets usually leaves society as a whole worse off. C) taxation of goods and services does not create a deadweight loss of economic welfare. D) intervention in markets can prevent or reduce the effects of adverse events on the macroeconomy. 5. The modern tools of macroeconomic stabilization are: A) tax policy and government spending policy. B) fiscal policy and monetary policy. C) monetary policy and exchange rate policy. D) capital policy and labor policy. 6. Assuming that there are 100 million people in the total population with a labor force of 50 million and 47 million of those workers are employed, the unemployment rate is: A) 3%. B) 6%. C) 8%. D) 10%. 7. The actual numerical measure of aggregate output typically used by economists is called: A) aggregate output. B) nominal gross domestic product. C) net domestic product. D) real gross domestic product. 8. Stabilization policy refers to efforts taken to A) reduce unemployment. B) reduce the severity of recessions. C) rein in excessively strong expansions. D) Both a and b are correct. 9. If from 1980 to 2005, the average growth rate of aggregate output for the economy of Groland was 4.5%, while over the same time, Groland's population grew an average of 2.0% per year, then aggregate output per person grew at an average of _____ each year. A) 1.5% B) 2.5% (Not sure T.T) C) 4.5% D) 6.5% 10. Secular long-run growth is the sustained upward trend in: A) aggregate output per person over several decades. B) nominal GDP over time. C) real GDP over time. D) aggregate output per person over the business cycle. 11. The U.S. sells approximately ____ of what it produces to other countries, while Canada sells almost _____ of what it produces to other countries A) 12%; 50% B) 12%; 20% C) 20%; 50% D) 20%; 12% 12. The business cycle is the long-run alternation between economic downturns and recessions and economic upturns and expansions....
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