1、Name: _ Date: _1.Macroeconomics does not try to answer the question of:A)why do some countries experience rapid growth.B)what is the rate of return on education.C)why do some countries have high rates of inflation.D)what causes recessions and depressions.2.A typical trend during a recession is that:
2、A)the unemployment rate falls.B)the popularity of the incumbent president rises.C)incomes fall.D)the inflation rate rises.3.Macroeconomics is the study of the:A)activities of individual units of the economy.B)decision making by households and firms.C)economy as a whole.D)interaction of firms and hou
3、seholds in the marketplace.4.The study of the economy as a whole is called:A)household economics.B)business economics.C)microeconomics.D)macroeconomics.5.Macroeconomists cannot conduct controlled experiments, such as testing various tax and expenditure policies, because:A)it is against the law.B)the
4、y tried it once and it did not work.C)they must make use of the data history gives them.D)economists already know the answers that would come out of the experiments.6.The ability of macroeconomists to predict the future course of economic events:A)is no better than the meteorologists ability to pred
5、ict the next months weather.B)is much better than the meteorologists ability to predict the next months weather.C)has gotten worse over time.D)is less precise than it was in the 1920s.7.Which of the combinations listed is not a U.S. president and an important economic issue of his administration?A)P
6、resident Carter, inflationB)President Reagan, budget deficitsC)President G.H.W. Bush, budget deficitsD)President Clinton, inflation8.All of the following are types of macroeconomics data except the:A)price of an IBM computer.B)growth rate of real GDP.C)inflation rate.D)unemployment rate.9.All of the
7、 following are important macroeconomic variables except:A)real GDP.B)the unemployment rate.C)the marginal rate of substitution.D)the inflation rate.10.The total income of everyone in the economy adjusted for the level of base year prices is called:A)a recession.B)an inflation.C)real GDP.D)a business
8、 fluctuation.11.A measure of how fast the general level of prices is rising is called the:A)growth rate of real GDP.B)inflation rate.C)unemployment rate.D)market-clearing rate.12.The inflation rate is a measure of how fast:A)the total income of the economy is growing.B)unemployment in the economy is
9、 increasing.C)the general level of prices in the economy is rising.D)the number of jobs in the economy is expanding.13.Real GDP _ over time and the growth rate of real GDP _.A)grows; fluctuatesB)is steady; is steadyC)grows; is steadyD)is steady; fluctuates14.Two striking features of a graph of U.S.
10、real GDP per capita over the twentieth century are the:A)overall upward trend interrupted by a large downturn due to the economic depression in the 1930s.B)nearly constant level with a large downturn in the 1930s.C)downward trend in the first half of the century followed by the upward trend in the s
11、econd half.D)constant level in the first half of the century followed by the upward trend in the second half.15.In the U.S. economy today, real GDP per person, compared with its level in 1900, is about:A)50 percent higher.B)twice as high.C)three times as high.D)eight times as high.16.Recessions are
12、periods when real GDP:A)increases slowly.B)increases rapidly.C)decreases mildly.D)decreases severely.17.Compared with a recession, real GDP during a depression:A)increases more rapidly.B)increases at approximately the same rate.C)decreases at approximately the same rate.D)decreases more severely.18.
13、A severe recession is called a(n):A)depression.B)deflation.C)exogenous event.D)market-clearing assumption.19.The inflation rate in the United States averaged about:A)nearly zero between 1900 and 1950.B)nearly zero between 1950 and 2000.C)10 percent between 1900 and 1950.D)10 percent between 1950 and
14、 2000.20.Deflation occurs when:A)real GDP decreases.B)the unemployment rate decreases.C)prices fall.D)prices increase, but at a slower rate.21.A period of falling prices is called:A)deflation.B)inflation.C)a depression.D)a recession.22.A graph of the rate of inflation in the United States over the t
15、wentieth century shows:A)an overall upward trend interrupted by a large downturn in the 1930s.B)some periods of deflation in the first half of the century, but only positive rates of inflation in the second half of the century.C)a relatively steady, positive level throughout the century except for d
16、eflation in the 1930s.D)a constant rate of inflation in the first half of the century followed by an upward trend in the second half.23.A graph of the U.S. unemployment rate over the twentieth century shows:A)an overall upward trend in the unemployment rate interrupted by a large upturn in the 1930s
17、.B)an overall downward trend in the unemployment rate interrupted by a large upturn in the 1930s.C)rates of unemployment always greater than zero with substantial variations from year to year.D)alternating periods of positive and negative rates of unemployment.24.During the period between 1900 and 2
18、000, the unemployment rate in the United States was highest in the:A)1920s.B)1930s.C)1970s.D)1980s.25.The unemployment rate:A)was zero during the 1990s in the United States.B)was zero on average between 1900 and 1950 in the United States.C)has never been zero in the United States.D)is usually zero w
19、hen the economy is not in a recession or depression.26.Exogenous variables are:A)fixed at the moment they enter the model.B)determined within the model.C)the outputs of the model.D)explained by the model.27.Endogenous variables are:A)fixed at the moment they enter the model.B)determined within the m
20、odel.C)the inputs of the model.D)from outside the model.28.In an economic model:A)exogenous variables and endogenous variables are both fixed when they enter the model.B)endogenous variables and exogenous variables are both determined within the model.C)endogenous variables affect exogenous variable
21、s.D)exogenous variables affect endogenous variables.29.Variables that a model tries to explain are called:A)endogenous.B)exogenous.C)market clearing.D)fixed.30.Variables that a model takes as given are called:A)endogenous.B)exogenous.C)market clearing.D)macroeconomic.31.Macroeconomic models are used
22、 to explain how _ variables influence _ variables.A)endogenous; exogenousB)exogenous; endogenousC)microeconomic; macroeconomicD)macroeconomic; microeconomic32.Important characteristics of macroeconomic models include all of the following except:A)simplifying assumptions.B)functional relationships ba
23、sed on controlled experiments.C)endogenous and exogenous variables.D)implicit or explicit consistency with microeconomic foundations.33.In a simple graphical model of the supply and demand for pizza with the price of pizza measured vertically and the quantity of pizza measured horizontally:A)the sup
24、ply curve slopes upward and to the right.B)the demand curve slopes upward and to the right.C)the supply curve slopes downward and to the right.D)at the equilibrium price, the supply of pizza exceeds the demand for pizza.34.In a simple model of the supply and demand for pizza, the endogenous variable
25、s are:A)the price of pizza and the price of cheese.B)aggregate income and the quantity of pizza sold.C)aggregate income and the price of cheese.D)the price of pizza and the quantity of pizza sold.35.In a simple model of the supply and demand for pizza, when aggregate income increases, the price of p
26、izza _ and the quantity purchased _.A)increases; decreasesB)increases; increasesC)decreases; increasesD)decreases; decreases36.In a simple model of the supply and demand for pizza, when the price of cheese increases, the price of pizza _ and the quantity purchased _.A)increases; increasesB)decreases
27、; increasesC)decreases; decreasesD)increases; decreases37.Which statement below best illustrates the “art,” rather than the “science” of macroeconomics?A)Macroeconomic data provides the motivation for new macroeconomic theory.B)Macroeconomic relationships can be expressed using symbols and equations
28、.C)Macroeconomists must determine which simplifying assumptions clarify our thinking and which mislead us.D)Graphs and charts can be used to illustrate the history of macroeconomic variables.38.In the relationship expressed in functional form, Y = G(K, L), Y stands for real GDP, K stands for the amo
29、unt of capital in the economy, and L stands for the amount of labor in the economy. In this case G( ):A)is the growth rate of real GDP when the amount of capital and labor in the economy is fixed.B)indicates that the variables inside the parentheses are endogenous variables in the model.C)is the sym
30、bol that stands for government input into the production process.D)is the function telling how the variables in the parentheses determine real GDP.39.Which of the following statements about economic models is true?A)There is only one correct economic model.B)All economic models are based on the same
31、 assumptions.C)The purpose of economic models is to show how endogenous variables affect exogenous variables.D)Economists use different models to address different economic phenomenon.40.Macroeconomic models:A)assume all wages and prices are sticky.B)assume all wages and prices are flexible.C)make d
32、ifferent assumptions to explain different aspects of the macroeconomy.D)focus primarily on the optimizing behavior of households and firms.41.The assumption of continuous market clearing means that:A)sellers can sell all that they want at the going price.B)buyers can buy all that they want at the go
33、ing price.C)in any given month, buyers can buy all that they want and sellers can sell all that they want at the going price.D)at any given instant, buyers can buy all that they want and sellers can sell all that they want at the going price.42.All of the following statements about sticky prices are
34、 true except:A)in the short run, some wages and prices are sticky.B)the sticky-price model describes the equilibrium toward which the economy slowly gravitates.C)for studying year-to-year fluctuations, most macroeconomists believe that price stickiness is a better assumption than is price flexibilit
35、y.D)magazine publishers tend to change their newsstand prices only every three or four years.43.The assumption of flexible prices is a more plausible assumption when applied to price changes that occur:A)from minute to minute.B)from year to year.C)in the long run.D)in the short run.44.An assumption
36、of _ is more plausible for studying the short-run behavior of the economy, while an assumption of _ is more plausible for studying the long-run, equilibrium behavior of the economy.A)deflation; inflationB)inflation; deflationC)flexible prices; sticky pricesD)sticky prices; flexible prices45.When stu
37、dying the short-run behavior of the economy, an assumption of _ is more plausible, in contrast to studying the long-run equilibrium behavior of an economy, when an assumption of _ is more plausible.A)inflation; unemploymentB)unemployment; inflationC)flexible prices; sticky pricesD)sticky prices; fle
38、xible prices46.Which of the following is the best example of a sticky price?A)the price of a barrel of oilB)the price of the U.S. dollar in terms of eurosC)the price of a share of stockD)the price of a soda in a vending machine47.Which of the following is the best example of a flexible price?A)the p
39、rice of a cup of coffee in a coffee shopB)the price of gasoline at a service stationC)the price of a ticket at a movie theaterD)the price of a book in a bookstore48.How does the distinction between flexible and sticky prices impact the study of macroeconomics?A)The study of flexible prices is confin
40、ed to microeconomics, while macroeconomics focuses on sticky prices.B)Macroeconomists use flexible prices to explain inflation and sticky prices to explain unemployment.C)Flexible prices are typically assumed in the study of the long run, while sticky prices are assumed in the study of the short run
41、.D)Endogenous variables are measured using flexible prices, while exogenous variables are measured using sticky prices.49.Macroeconomics is:A)based on microeconomic foundations.B)completely separate from microeconomics.C)explicitly based on microeconomic behavior.D)a subsidiary branch of microeconom
42、ics.50.Macroeconomics is based on microeconomics for all of the following reasons except:A)when we study the economy as a whole, we must consider the decisions of individual economic actors.B)aggregate variables are simply the sum of variables describing many individual decisions.C)macroeconomic dec
43、ision makers, when they make their choices, are required to maximize utility functions.D)to understand the determinants of aggregate investment, we must think about a firms deciding whether to build a new factory.51.Macroeconomists are like scientists because they both:A)design data and conduct cont
44、rolled experiments to test their theories.B)rely on data analyzed from experiments they set up in a laboratory.C)are unlimited in their use of controlled experiments.D)collect data, develop hypotheses, and analyze the results.52.Using a market-clearing model to analyze the demand for haircuts is _ b
45、ecause the price of a haircut usually changes _.A)realistic; frequentlyB)realistic; infrequentlyC)unrealistic; frequentlyD)unrealistic; infrequently53.Assume that the equation for demand for bread at a small bakery is Qd = 60 10Pb + 3Y, where Qd is the quantity of bread demanded in loaves and Y is the average income in the town in thousands of dollars.a.If the average income in the town is 10, state the equation for Qd i
