Test Bank For Macroeconomics, 10th Edition N. Gregory Mankiw.

TEST BANK FOR MACROECONOMICS, 10TH EDITION N. GREGORY M ANKIW Page 1 Chapter 1. The Science of Macroeconomics 1. Macroeconomics does not try to answer the question of: A) why some countries experience rapid growth. B) what is the rate of return on education. C) why some countries have high rates of inflatio n. D) what causes recessions and depressions. 2. A typical trend during a recession is that: A) the unemployment rate falls. B) the popularity of the incumbent president rise s. C) incomes fall. D) the inflation rate rises. 3. Macroeconomics is the study of t he: A) activities of individual units of the economy. B) decisionmaking by households and firms. C) economy as a whole. D) interaction of firms and households in the mar ketplace. 4. The study of the economy as a whole is called: A) household economics. B) business economics. C) microeconomics. D) macroeconomics. 5. The ability of macroeconomists to predict the fu ture course of economic events: A) is no better than a meteorologist's ability to predict the next month's weather. B) is much better than a meteorologist's ability to predict the next month's weather. C) has gotten worse over time. D) is less precise than it was in the 1920s. 6. Which of the combinations listed is not a U.S. president and an important economic issue of his administration? A) President Carter, inflation B) President Reagan, budget deficits C) President G. H. W. Bush, budget deficits D) President Clinton, inflation