INTRODUCTION TO MACROECONOMICS
HOMEWORK # 4
17 points possible
a. In the diagram below, assume the prevailing real wage rate is 5. Calculate the
b. Suppose that some of the unemployed become discouraged w
1. Because a government budget deficit represents
a) Negative public saving, it increases national saving
b) Negative public saving, it decreases national saving
c) Positive public saving, it increases national saving
d) Positive public saving,
Investment is a
small part of real GDP, so it accounts for a small share of the fluctuation in real GDP.
small part of real GDP, yet it accounts for a large share of the fluctuation in real GDP.
large part of real GDP, so it accounts for a la
Dollar bills, rare paintings, and emerald necklaces are all
media of exchange.
units of account.
stores of value.
All of the above are correct.
The study of economics and definitions in economics
Chapter 19 Sample Practice Questions
Over the past three decades, the United States has
generally had, or been very near to a trade balance.
had trade deficits in about as many years as it has trade surpluses.
persistently had a trade deficit.
The rank and the infant mortality rate
China 121 12.44
Mexico 122 12.23
The United States 167 5.87
France 213 3.28
Rank and life expectancy at birth
France 19 81.75
The United States 43 79.68
Mexico 95 75.65
China 99 75.41
increases incomes and enhances the ability of debtors to pay off their debts.
increases incomes and reduces the ability of debtors to pay off their debts.
decreases incomes and enhances the ability of debtors to pay off their debts.
The interest-rate effect
depends on the idea that increases in interest rates increase the quantity of money demanded.
depends on the idea that increases in interest rates increase the quantity of money supplied.
is the most important reason,
In the Summer of 2008, consumers indicated that they were less optimistic about the
future of the econo-my. Such a change in sentiment is likely to
shift aggregate demand to the right.
For the U.S. economy, which of the following is the most important reason for the downward
slope of the aggregate-demand curve?
the wealth effect
the interest-rate effect
the exchange-rate effect
the real-wage effect
During a recession the economy experiences
rising employment and income.
rising employment and falling income.
rising income and falling employment.
falling employment and income.
Other things the same, people in the U.S. would want to save more if the real interest rate in the
fell. The increased saving would increase the quantity of loanable funds demanded.
fell. The increased saving would increase the quantity of
One year a country has positive net exports. The next year it still has positive but larger net
its trade surplus fell.
its trade surplus rose.
its trade deficit fell.
its trade deficit rose
A.W. Phillipss discovery of a particular relationship between unemployment and
inflation for the United Kingdom
could not be extended to other countries, despite many researchers attempts to provide that
was quickly extended to other c
CHAPTERS 8 & 9:
THE FINANCIAL SYSTEM
WHY FINANCE IS
People that can make good use of
money are not always the same
people that have money to spend.
Financial institutions provide those who
The National Income
WHAT IS GDP?
GDP = OUTPUT=INCOME
Producing output is the only
source of income for a
A nations standard of living is
determined by its ability to
E202 INTRODUCTION TO MACROECONOMICS
Professor Peter Rangazas
TR 9:15A to 10:15A Cavanaugh Hall 518
Required: Cowen and Tabarrok, Macroeconomics, Worth 3rd Edition
Grading: Based on best 20 quizze
Chapter 6 (Key takeaway)
Define GDP per capita GDP/population
GDP market value of all final goods/services produced in a year
Economy is growing GDP per capita is growing, standard of living is improving
Economy is booming or contracting Growth in real
TOPIC 8: In recent years, the structure of a famiiy and the roie of its members are
graduaiiy changing. What kinds of changes can occur? Do you think these changes
are positive and negative?
Introduction: I will rst introduce the topic by re
Syllabus for E270
Section 21874 (Tuesday, 6:00P-8:40P)
278-7213. Leave a clear message. If you dont leave a message, I will not call you back.
SYLLABUS FOR E202
INSTRUCTOR: Abraham Mathew
CLASS ROOM: CA 229
TIME: Th 6: 00 8:40 pm
Email: [email protected]
Brief Principles of Macroeconomics by N. Gregory Mankiw 6 th ed.