Case_macro8c1_Ch5. - Chapter 5 Introduction to...

Info iconThis preview shows pages 1–82. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 5 Introduction to Macroeconomics Principles of Macroeconomics, Case/Fair, 8e 5.1 The Roots of Macroeconomics Multiple Choice 1 Which of the following is NOT a topic studied in Macroeconomics? A . Gross Domestic Product B . The unemployment rate C . The price of IBM computers D . The inflation rate Answer : C Which of the following is a topic studied in Macroeconomics? A . Gross Domestic Product B . The wage of auto workers C . The price of IBM computers D . The amount of pizza produced Answer : A Which of the following is a topic studied in Macroeconomics? A . Output growth B . Unemployment C . Inflation D . All of the above Answer : D Prices that do not always adjust rapidly to maintain equality between quantity supplied and quantity demanded are A . administered prices. B . sticky prices. C . regulatory prices. D . market prices. Answer : B The demand for oil has increased in January without any change in supply. Six months later there still has been no change in oil prices. This is an example of a A . price floor. B . price control. C . sticky price. D . macroeconomic price. Answer : C The demand for nurses declined in the summer of 1993, but the starting wages paid to nurses was still the same at the end of 1993. This is an example of a A . sticky price. B . flexible price. C . highly regulated market. D . price control. Answer : A Which of the following is an assumption used by Classical economists? ( check ) A . Wages adjust downward but not upward. B . Wages adjust upward but not downward. C . Wages are inflexible. D . Wages adjust both upward and downward. Answer : D Accord ing to the Classical model, unemployment ( check ) A . could not persist because wages would rise to eliminate the excess supply of labor. B . could not persist because wages would fall to eliminate the excess supply of labor. C . could be eliminated through fiscal and monetary policies. D . could be eliminated only through government intervention. Answer : B Accord ing to Classical economists, if the quantity of labor demanded exceeds the quantity supplied, there is a A . surplus of labor and wages will rise. B . shortage of labor and wages will fall. C . shortage of labor and wages will rise. D . surplus of labor and wages will fall. Answer : C Accord ing to the Classical economists, the economy A . requires fine-tuning to reach full employment. B . has sticky prices in many industries. C . is self-correcting. D . will never be at full employment. Answer : C Macroe conomi c policies became more influenced by Keynes' theories starting with, A . the period of high unemployment and high inflation in the 1970s. B . the Great Depression. C . the period of high inflation in the early 1980s. D . the OPEC recession. Answer : B Accord ing to Classical models, the level of employment is determined primarily by A . the level of aggregate demand for goods and services. B . prices and wages. C . government taxation. D . government spending. Answer : B Accord ing to Keynes, the level of employment is determined by A . flexible wages and prices. (check) B . interest rates. C . price and wages. D . the level of aggregate demand for goods and services. Answer : D Suppos...
View Full Document

This note was uploaded on 04/06/2012 for the course BUSINESS CS204, Eco taught by Professor Mr during the Spring '12 term at American University of Beirut.

Page1 / 786

Case_macro8c1_Ch5. - Chapter 5 Introduction to...

This preview shows document pages 1 - 82. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online