Macro Econ- Taylor Econ [ACTUAL EXAM ] LATEST
VERSION [QUESTIONS AND ANSWERS] DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST UPDATE 2025
GRADED A (BRAND NEW!!)
3. Which of the following is a building block of neoclassical
economics?
A. the size of the economy is determined by real GDP
B. sticky wages and prices
C. aggregate demand model
D. wages and prices will adjust in a flexible manner - CORRECT
ANSWER D. wages and prices will adjust in a flexible manner
4. Which of the following government policies would be supported by
neoclassical macroeconomic assumptions?
A. focus on long-term growth and on controlling inflation
B. focus on short-term recession and controlling inflation
C. focus on combating depression and cyclical unemployment
D. focus on real GDP and cyclical unemployment - CORRECT
ANSWER A. focus on long-term growth and on controlling inflation
5. Which of the following represents a Keynesian point of view of
macroeconomics?
A. focus on long-term growth in the economy
B. aggregate supply is the primary determinate of economic output
C. creating increases in aggregate demand to reduce unemployment
D. vertical aggregate supply - CORRECT ANSWER C. creating
increases in aggregate demand to reduce unemployment
6. From a neoclassical viewpoint, government should focus less on:
A. long-term growth.
B. controlling inflation.
C. aggregate supply.
D. cyclical unemployment. - CORRECT ANSWER D. cyclical
unemployment.
, 7. The neoclassical view holds that long-term expansion of potential
GDP due to _______________________ will determine
____________________.
A. economic growth; the size of the economy
B. government spending; aggregate demand
C. government spending; aggregate supply
D. economic adjustments; cyclical unemployment - CORRECT
ANSWER A. economic growth; the size of the economy
8. The Keynesian view of economics assumes that:
A. the Keynesian Phillips curve is vertical.
B. wages are sticky.
C. the economy must focus is on long-term growth.
D. economic output is primarily determined by aggregate supply. -
CORRECT ANSWER B. wages are sticky.
9. In the neoclassical version of the AD/AS model, which of the
following should you use to represent the AS curve?
A. the AS curve shifting as productivity increases
B. an upward sloping curve with a vertical top
C. a vertical line drawn at the level of potential GDP
D. the AS curve shifting as potential GDP expands - CORRECT
ANSWER C. a vertical line drawn at the level of potential GDP
10. Which of the following is a distinguishing characteristic of the
neoclassical view?
A. increasing price levels will increase the unemployment rate
B. wages and real GDP are sticky over time
C. wages are maintained at original equilibrium
D. flexibility of wages and prices over time - CORRECT ANSWER D.
flexibility of wages and prices over time
11. A vertical AS curve means that the level of aggregate supply (or
potential GDP) will determine the real GDP of the economy,
regardless of the level of:
A. cyclical unemployment.
B. real unemployment.
C. aggregate demand.
D. inflationary pressures. - CORRECT ANSWER C. aggregate
demand.
VERSION [QUESTIONS AND ANSWERS] DETAILED AND
VERIFIED FOR GUARANTEED PASS- LATEST UPDATE 2025
GRADED A (BRAND NEW!!)
3. Which of the following is a building block of neoclassical
economics?
A. the size of the economy is determined by real GDP
B. sticky wages and prices
C. aggregate demand model
D. wages and prices will adjust in a flexible manner - CORRECT
ANSWER D. wages and prices will adjust in a flexible manner
4. Which of the following government policies would be supported by
neoclassical macroeconomic assumptions?
A. focus on long-term growth and on controlling inflation
B. focus on short-term recession and controlling inflation
C. focus on combating depression and cyclical unemployment
D. focus on real GDP and cyclical unemployment - CORRECT
ANSWER A. focus on long-term growth and on controlling inflation
5. Which of the following represents a Keynesian point of view of
macroeconomics?
A. focus on long-term growth in the economy
B. aggregate supply is the primary determinate of economic output
C. creating increases in aggregate demand to reduce unemployment
D. vertical aggregate supply - CORRECT ANSWER C. creating
increases in aggregate demand to reduce unemployment
6. From a neoclassical viewpoint, government should focus less on:
A. long-term growth.
B. controlling inflation.
C. aggregate supply.
D. cyclical unemployment. - CORRECT ANSWER D. cyclical
unemployment.
, 7. The neoclassical view holds that long-term expansion of potential
GDP due to _______________________ will determine
____________________.
A. economic growth; the size of the economy
B. government spending; aggregate demand
C. government spending; aggregate supply
D. economic adjustments; cyclical unemployment - CORRECT
ANSWER A. economic growth; the size of the economy
8. The Keynesian view of economics assumes that:
A. the Keynesian Phillips curve is vertical.
B. wages are sticky.
C. the economy must focus is on long-term growth.
D. economic output is primarily determined by aggregate supply. -
CORRECT ANSWER B. wages are sticky.
9. In the neoclassical version of the AD/AS model, which of the
following should you use to represent the AS curve?
A. the AS curve shifting as productivity increases
B. an upward sloping curve with a vertical top
C. a vertical line drawn at the level of potential GDP
D. the AS curve shifting as potential GDP expands - CORRECT
ANSWER C. a vertical line drawn at the level of potential GDP
10. Which of the following is a distinguishing characteristic of the
neoclassical view?
A. increasing price levels will increase the unemployment rate
B. wages and real GDP are sticky over time
C. wages are maintained at original equilibrium
D. flexibility of wages and prices over time - CORRECT ANSWER D.
flexibility of wages and prices over time
11. A vertical AS curve means that the level of aggregate supply (or
potential GDP) will determine the real GDP of the economy,
regardless of the level of:
A. cyclical unemployment.
B. real unemployment.
C. aggregate demand.
D. inflationary pressures. - CORRECT ANSWER C. aggregate
demand.
