32 Questions
What is the focus of macroeconomics?
Regional, national, and global economies
What is the traditional division in economics that institutionalizes the field?
Macroeconomics vs. Microeconomics
Which field of economics focuses on aggregate variables?
Macroeconomics
Which time frames does macroeconomics traditionally analyze?
Short-term fluctuations over the business cycle and medium-term structural levels of variables
What do macroeconomists study with regard to international finance?
Global financial institutions
Which field of economics analyzes whether changes in supply or demand are to blame for price increases in specific sectors?
Microeconomics
Which time horizon in macroeconomics focuses on business cycle fluctuations and changes in aggregate demand?
The short run
In macroeconomics, which of the following are considered as the three central macroeconomic variables?
Output, unemployment, and inflation
What is the focus of the medium run time horizon in macroeconomics?
The economy's structures and the medium-run equilibrium
What does the long run time scale in macroeconomics emphasize?
Determinants of long-run economic growth
When did the recognition of macroeconomics as a separate field of research and study generally start?
In 1936
Which publication is credited with marking the start of macroeconomics as a separate field of research and study?
The General Theory of Employment, Interest and Money
What are the consequences studied in macroeconomics due to policies targeted at mitigating fluctuations?
Effects on living standards in the long term
What is one of the dimensions distinguishing economic theory sharply?
'Openness' of an economy
What factors move slowly over the medium run in economics?
'Supply' factors like the capital stock, technology level, and labor force
'Stabilization policies like monetary policy or fiscal policy are relevant in which time frame?'
'Short run'
What does the aggregate demand curve show?
The relationship between price level and real GDP demanded
Which of the following is a determinant of aggregate supply?
Technology
What is aggregate demand?
Total amount of demand for all finished goods and services in an economy
What are the components of aggregate demand?
Consumption, Investment, Government purchases, Net exports
What is included in the determinants of aggregate supply?
Labor and capital productivity
What does the downward slope of the aggregate demand curve indicate?
An increase in price level leads to a decrease in aggregate demand
What does the upward slope of the aggregate supply (AS) curve indicate?
An increase in the price level encourages more production
Which factor can affect aggregate demand through spending and taxation?
Fiscal policy
What can lead to changes in consumption and aggregate demand?
Changes in consumer preferences
Which factor can influence the cost of production and aggregate supply through alterations in the cost of labor, capital, and raw materials?
Changes in factor prices
What can lead to increased productivity and aggregate supply?
Technological advancements
Which factor can impact the business environment and aggregate supply through new laws or regulations?
Changes in government rules and regulations
What can affect the cost of production and aggregate supply through government policies such as subsidies or taxes?
Subsidies and taxes
What can influence the production of goods and services and aggregate supply?
Availability of natural resources
Which concept helps analyze the relationship between the price level and the quantity of goods and services produced in an economy?
Aggregate demand
Which macroeconomic concept refers to the decisions made by governments to influence aggregate demand through spending and taxation?
Fiscal policy
Test your knowledge of the fundamental concepts and principles in macroeconomics with this quiz. Explore topics such as GDP, national income, unemployment, inflation, consumption, and international trade.
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