TEST BANK
Brief Principles of Macroeconomics
MANKIW
10th Edition
,Chapter 1. The Science of Macroeconomics
Macroeconomics does not try to answer the question of: why
some countries experience rapid growth.
what is the rate of return on education.
why some countries have high rates of inflation. what
causes recessions and depressions.
A typical trend during a recession is that: the
unemployment rate falls.
the popularity of the incumbent president rises.
incomes fall.
the inflation rate rises.
Macroeconomics is the study of the:
activities of individual units of the economy.
decisionmaking by households and firms. economy
as a whole.
interaction of firms and households in the marketplace.
The study of the economy as a whole is called: household
economics.
business economics.
microeconomics.
macroeconomics.
The ability of macroeconomists to predict the future course of economic events: is no
better than a meteorologist's ability to predict the next month's weather.
is much better than a meteorologist's ability to predict the next month's weather. has
gotten worse over time.
is less precise than it was in the 1920s.
Which of the combinations listed is not a U.S. president and an important economic issue of
his administration?
President Carter, inflation President
Reagan, budget deficits
President G. H. W. Bush, budget deficits
President Clinton, inflation
Page 1
, All of the following are types of macroeconomics data except the: price of a
computer.
growth rate of real GDP.
inflation rate.
unemployment rate.
All of the following except are important macroeconomic variables. real
GDP
the unemployment rate
the marginal rate of substitution the
inflation rate
The total income of everyone in the economy adjusted for the level of base year prices is called:
a recession.
an inflation.
real GDP.
a business fluctuation.
A measure of how fast the general level of prices is rising is called the: growth
rate of real GDP.
inflation rate.
unemployment rate.
market-clearing rate.
The inflation rate is a measure of how fast:
the total income of the economy is growing.
unemployment in the economy is increasing.
the general level of prices in the economy is rising. the
number of jobs in the economy is expanding.
Real GDP over time, and the growth rate of real GDP .
grows; fluctuates
is steady; is steady
grows; is steady
is steady; fluctuates
Page 2
, Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the:
overall upward trend interrupted by a large downturn due to the economic
depression in the 1930s.
nearly constant level with a large downturn in the 1930s.
downward trend in the first half of the century followed by the upward trend in the second half.
constant level in the first half of the century followed by the upward trend in the second
half.
In the U.S. economy today, real GDP per person, compared with its level in 1900, is about:
50 percent higher.
twice as high. three
times as high. eight
times as high.
Recessions are periods when real GDP:
increases slowly.
increases rapidly.
decreases mildly.
decreases severely.
Compared with real GDP during a recession, real GDP during a depression:
increases more rapidly.
increases at approximately the same rate.
decreases at approximately the same rate.
decreases more severely.
A severe recession is called a(n):
depression.
deflation.
exogenous event.
market-clearing assumption.
The annual inflation rate in the United States averaged: nearly
zero between 1900 and 1950.
nearly zero between 1950 and 2000.
about 10 percent between 1900 and 1950.
about 10 percent between 1950 and 2000.
Page 3
Brief Principles of Macroeconomics
MANKIW
10th Edition
,Chapter 1. The Science of Macroeconomics
Macroeconomics does not try to answer the question of: why
some countries experience rapid growth.
what is the rate of return on education.
why some countries have high rates of inflation. what
causes recessions and depressions.
A typical trend during a recession is that: the
unemployment rate falls.
the popularity of the incumbent president rises.
incomes fall.
the inflation rate rises.
Macroeconomics is the study of the:
activities of individual units of the economy.
decisionmaking by households and firms. economy
as a whole.
interaction of firms and households in the marketplace.
The study of the economy as a whole is called: household
economics.
business economics.
microeconomics.
macroeconomics.
The ability of macroeconomists to predict the future course of economic events: is no
better than a meteorologist's ability to predict the next month's weather.
is much better than a meteorologist's ability to predict the next month's weather. has
gotten worse over time.
is less precise than it was in the 1920s.
Which of the combinations listed is not a U.S. president and an important economic issue of
his administration?
President Carter, inflation President
Reagan, budget deficits
President G. H. W. Bush, budget deficits
President Clinton, inflation
Page 1
, All of the following are types of macroeconomics data except the: price of a
computer.
growth rate of real GDP.
inflation rate.
unemployment rate.
All of the following except are important macroeconomic variables. real
GDP
the unemployment rate
the marginal rate of substitution the
inflation rate
The total income of everyone in the economy adjusted for the level of base year prices is called:
a recession.
an inflation.
real GDP.
a business fluctuation.
A measure of how fast the general level of prices is rising is called the: growth
rate of real GDP.
inflation rate.
unemployment rate.
market-clearing rate.
The inflation rate is a measure of how fast:
the total income of the economy is growing.
unemployment in the economy is increasing.
the general level of prices in the economy is rising. the
number of jobs in the economy is expanding.
Real GDP over time, and the growth rate of real GDP .
grows; fluctuates
is steady; is steady
grows; is steady
is steady; fluctuates
Page 2
, Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the:
overall upward trend interrupted by a large downturn due to the economic
depression in the 1930s.
nearly constant level with a large downturn in the 1930s.
downward trend in the first half of the century followed by the upward trend in the second half.
constant level in the first half of the century followed by the upward trend in the second
half.
In the U.S. economy today, real GDP per person, compared with its level in 1900, is about:
50 percent higher.
twice as high. three
times as high. eight
times as high.
Recessions are periods when real GDP:
increases slowly.
increases rapidly.
decreases mildly.
decreases severely.
Compared with real GDP during a recession, real GDP during a depression:
increases more rapidly.
increases at approximately the same rate.
decreases at approximately the same rate.
decreases more severely.
A severe recession is called a(n):
depression.
deflation.
exogenous event.
market-clearing assumption.
The annual inflation rate in the United States averaged: nearly
zero between 1900 and 1950.
nearly zero between 1950 and 2000.
about 10 percent between 1900 and 1950.
about 10 percent between 1950 and 2000.
Page 3
