B) the unemployment rate
D) the inflation rate
B) the wage of auto workers
B) aggregate behavior of households and industries
B) sticky prices.
C) regulatory prices.
D) market prices.
B) price control.
C) sticky price.
D) macroeconomic price.
B) flexible price.
D) price control.
B) the behavior of each individual.
D) none of the above.
B) decrease in the overall level of economic activity.
C) increase in the overall price level.
D) increase in the overall level of economic activity.
B) economic activity declines.
D) the unemployment rate declines.
B) the long run inflation rate.
D) the short run production capacity of an economy.
B) long- term trends in the price level.
B) a contraction.
C) a slump.
D) all of the above.
A) an expansion; a recession
B) a depression; an expansion
C) a trough; a peak
D) a recession; an expansion
B) a depression.
D) a recession
B) an inflation.
C) a peak
D) a recession.
A) three consecutive quarters.
B) two consecutive quarters.
C) a year.
D) six consecutive quarters.
C) a stagflation.
B) people are not willing to work at the going wage rate.
D) there is excess demand in the labor market.
B) there is an excess demand for labor.
D) quantity demanded of labor exceeds quantity supplied.
26) The unemployment rate equals
A) labor force/population.
C) (employed- unemployed)/labor force.
D) (labor force - employed) / labor force.
D) hyperinflationary period.
B) falls; falls.
C) rises; falls.
D) rises; rises.
expanding or contracting.
D) Business cycles are always symmetric the length of an expansion is the same as the length of a contraction.
The Components of the Macroeconomy
C) fiscal policy.
D) incomes policy.
B) income policies.
C) supply- side policy.
D) monetary policy.
B) money supply and/or taxes.
D) taxes and/or interest rate.
B) a fiscal policy.
C) a supply- side policy.
D) a monetary policy.
B) Federal Reserve
D) Office of the Comptroller of the Currency
B) monetary policy.
C) growth policy.
D) supply side policy.
B) supply side or growth policies.
D) monetary policies.
B) circular flow diagram.
D) taxes and transfer payments.
D) the salary paid to a member of the armed forces.
B) a cash payment made by the government to people who do not supply goods, services or
labor in exchange for the payment.
C) a cash payment for transferring a good from one person to another.
D) an in kind payment for workingʺ off the books.ʺ
D) receiving transfer payments.
B) taxes must always be greater than government expenditures.
D) tax receipts must be equal to transfer payments
B) the goods and services market
D) the factor market
B) only demand.
C)both supply and demand.
D) neither supply nor demand.
B) households, the government, and the rest of the world.
D) households, the government, business firms, and the rest of the world.
B) the money market
B) demand; demand.
C) supply; demand.
D) supply; supply.
B) goods; services.
D) labor; goods and services.
B) Treasury stocks.
C) Treasury bonds.
D) none of the above
B) corporate bond.
C) corporate dividend.
B) corporate profits distributed among shareholders.
D) promissory notes issued by corporations.
B) The government issues both bonds and shares.
therefore the right to share in the profits of the firm.
B) the portion of a corporationʹs profits that the firm pays out each period to its shareholders.
C) an increase in the value of an asset over the price initially paid for it.
D) the difference between an individualʹs economic income and money income.
B) share of stock.
C) promissory note.
D) capital gain.
B) an increase in the value of an asset over the purchase price initially paid for it.
B) promissory note.
C) capital gain.
D) corporate bond.
2) Contractionary fiscal policy includes raising taxes.
8) A capital gain is the increase in value of an asset above its initial cost.
B) increase both taxes and government spending.
D) decrease taxes and/or increase government spending.
B) Wages adjust upward but not downward.
D) Wages adjust both upward and downward.
B) could not persist because wages would fall to eliminate the excess supply of labor.
D) could be eliminated only through government intervention.
B) shortage of labor and wages will fall.
D) surplus of labor and wages will fall.
B) has sticky prices in many industries.
C) is self- correcting.
D) will never be at full employment.
B) the Great Depression.
C) the period of high inflation in the early 1980s.
D) the OPEC recession.
B) prices and wages.
C) government taxation.
D) government spending.
B) interest rates.
D) the level of aggregate demand for goods and services.
B) Classical economists.
B)balancing the budget.
D) increasing government spending.
B) the unemployment rate is high.
D) the rate of change in economic activities is positive.
1) Keynes believed that expansionary fiscal policy could help get an economy out of an inflation.