Economics Student Textbook Quiz

Macroeconomics focuses on the economy as a whole, analyzing issues such as economic growth, inflation, unemployment, and balance of trade.

True

<p>Macroeconomics covers areas such as fiscal policy, monetary policy, and the analysis of national income and economic output.</p> Signup and view all the answers

<p>poverty, unemployment, inflation, recession, population explosion</p> Signup and view all the answers

<p>All of the above</p> Signup and view all the answers

<p>87, 45</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Microeconomics and Macroeconomics</p> Signup and view all the answers

<p>Individual decision-making behavior</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>aggregate</p> Signup and view all the answers

<p>Gross Domestic Product</p> Signup and view all the answers

<p>Gross Domestic Product</p> Signup and view all the answers

<p>Human Development Index, United Nations Development Programme (UNDP)</p> Signup and view all the answers

<p>A regular and continuous rise in the general price level</p> Signup and view all the answers

<p>future</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Creeping Inflation = Moderate inflation where the price level rises at a slow rate Hyperinflation = Uncontrollable rise in the prices of goods and services Deflation = General level of prices of goods and services decreases Galloping Inflation = Prices rise rapidly at a rate of 10 to 20% per year</p> Signup and view all the answers

<p>Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling.</p> Signup and view all the answers

<p>The phases of business cycles are expansion, peak, contraction, and trough.</p> Signup and view all the answers

<p>Trade deficit refers to a situation where a country imports more goods and services than it exports, leading to a negative balance. Trade surplus occurs when a country's exports exceed its imports, resulting in a positive balance.</p> Signup and view all the answers

<p>Adam Smith</p> Signup and view all the answers

<p>Classical and Neoclassical</p> Signup and view all the answers

<p>Government should focus more on long-term growth and controlling inflation.</p> Signup and view all the answers

<p>Arthur Laffer</p> Signup and view all the answers

<p>fiscal policy</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>John Maynard Keynes = Keynesian Milton Friedman = Monetarist Robert Lucas = New Classical George Akerlof = New Keynesian</p> Signup and view all the answers

<p>Consumption, investment, government purchases, and net exports.</p> Signup and view all the answers

<p>Greater wealth leads to increased consumption, while decreased wealth leads to decreased consumption.</p> Signup and view all the answers

<p>Expectations of higher future prices and income lead to increased consumption and aggregate demand, while expectations of lower future prices and income lead to decreased consumption and aggregate demand.</p> Signup and view all the answers

<p>All of the above</p> Signup and view all the answers

<p>True</p> Signup and view all the answers

<p>Due to sticky wages and worker misperceptions</p> Signup and view all the answers

<p>Wages that are inflexible due to labor contract agreements or social conventions</p> Signup and view all the answers

<p>Real wage = Nominal wage / Price level</p> Signup and view all the answers

<p>The real wage rose to $24, leading to a decrease in the quantity of labor hired.</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>What causes a firm to grow?</p> Signup and view all the answers

<p>Structural unemployment</p> Signup and view all the answers

<p>False</p> Signup and view all the answers

<p>Business cycle</p> Signup and view all the answers

<p>The most recent wave of new Keynesian economics is more micro-based.</p> Signup and view all the answers

<p>Economic growth refers to the increase in a nation's capacity to produce goods and services over time.</p> Signup and view all the answers

<p>GDP (Gross Domestic Product) measures the total value of all goods and services produced within a country, while GNP (Gross National Product) measures the total value of goods and services produced by residents of a country, both domestically and abroad.</p> Signup and view all the answers

<p>Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power.</p> Signup and view all the answers

<p>The different types of unemployment include frictional, structural, and cyclical unemployment. Frictional unemployment occurs due to individuals transitioning between jobs, structural unemployment is caused by changes in the structure of industries, and cyclical unemployment is a result of changes in economic conditions.</p> Signup and view all the answers

<p>A trade or business cycle refers to the recurring pattern of expansion and contraction in an economy. The phases of a business cycle include expansion, peak, recession, and trough.</p> Signup and view all the answers

<p>The balance of trade measures the difference between a country's exports and imports of physical goods, while the balance of payments includes all economic transactions between a country and the rest of the world, including goods, services, and capital transfers.</p> Signup and view all the answers

<p>Some key schools of thought in macroeconomics include Classical economics, Keynesian economics, Monetarism, New Keynesian economics, and Supply-Side economics. Classical economics focuses on free markets, Keynesian economics emphasizes government intervention during economic downturns, Monetarism advocates for controlling the money supply, New Keynesian economics integrates microeconomic foundations into Keynesian analysis, and Supply-Side economics emphasizes reducing barriers to production.</p> Signup and view all the answers