TEST BANK FOR
MACROECONOMICS THEORIES AND
POLICIES, 10TH EDITION: RICHARD
T. YROYEN LATEST UPDATE
2025/2026 A+
2-1
,TABLE OF CONTENTS
PART ONE: INTRODUCTION AND MEASUREMENT
Chapter 1: Introduction
Chapter 2: Measurement of Macroeconomic Variables
PART TWO: CLASSICAL ECONOMICS AND THE KEYNESIAN REVOLUTION
Chapter 3: Classical Macroeconomics (I): Equilibrium Output and Employment
Chapter 4: Classical Macroeconomics (II): Money, Prices, and Interest
Chapter 5: The Keynesian System (I):The Role of Aggregate Demand
Chapter 6: The Keynesian System (II): Money, Interest, and Income
Chapter 7: The Keynesian System (III): Policy Effects in the IS—LM Model
Chapter 8: The Keynesian System (IV): Aggregate Supply and Demand
PART THREE: MACROECONOMIC THEORY AFTER KEYNES
Chapter 9: The Monetarist Counterrevolution
Chapter 10: Output, Inflation, and Unemployment: Alternative Views
Chapter 11: New Classical Economics
Chapter 12: Real Business Cycles and New Keynesian Economics
Chapter 13: Macroeconomic Models :A Summary
PART FOUR: OPEN ECONOMY MACROECONOMICS
Chapter 14: Exchange Rates and the International Monetary System
Chapter 15: Monetary and Fiscal Policy in the Open Economy
PART FIVE: ECONOMIC POLICY
Chapter 16: Money, the Banking System, and Interest Rates
Chapter 17: Optimal Monetary Policy
Chapter 18: Fiscal Policy
PART SIX: ECONOMIC GROWTH
Chapter 19: Policies for Intermediate-Run Growth
Chapter 20: Long-Run Economic Growth: Origins of the Wealth of Nations
2-2
, Chapter 02
Resource Utilization
Multiple Choice Questions
1. Our Economy Operates On Its Production Possibility Curve.
A. Always
B. Sometimes
C. Never
2. Which Statement Is True?
A. Entrepreneurial Ability Is In Short Supply In The U.S.
B. Land, Labor And Capital May Be Considered Passive Resources.
C. The Concept Of Opportunity Cost Is Irrelevant When There Is Scarcity.
D. None Of These Statements Are True.
3. Which One Of The Following Is The Most Accurate?
A. In Recent Years Our Economy Was At Full Employment Until 2010.
B. Our Economy Operated Outside Of Its Production Possibilities Curve In 2009 And 2010.
C. Our Economy Is Currently Operating On Its Production Possibilities Curve.
D. Our Economy Is Currently Operation Inside Its Production Possibilities Curve.
4. In Our Economy
A. There Is No Need To Economize.
B. We Rarely Have To Economize.
C. Only The Rich Have To.
D. Nearly Everyone Has To Economize.
5. The Term "The Affluent Society" Was Coined By
A. Michael Harrington.
B. John Kenneth Galbraith.
C. Karl Marx.
D. Adam Smith.
2-3
, 6. Each Of The Following Is An Example Of An Economic Resource Except
A. Land.
B. Money.
C. Capital.
D. Labor.
7. Statement I. Employment Discrimination Causes Underemployment.
Statement Ii. The Concept Of Opportunity Cost Has Little Validity In The Global Economy.
A. Statement I Is True And Statement Ii Is False.
B. Statement Ii Is True And Statement I Is False.
C. Both Statements Are True.
D. Both Statements Are False.
8. Our Economy Would Be Operating At Full Employment With Labor Unemployment Rate Of
Percent And A Capacity Utilization Rate Of Percent.
A. 5; 95
B. 5; 85
C. 10; 95
D. 10; 85
9. Which Statement Is True?
A. On The Production Possibilities Frontier We Have Zero Unemployment.
B. On The Production Possibilities Frontier 95 Percent Of The Labor Force Is Employed.
C. To Get Out Of A Recession, We Must Produce At Some Point Beyond Our Production
Possibilities Frontier.
D. To Have Economic Growth, We Must Push The Production Possibilities Frontier Inward.
10. In Order To Raise Our Rate Of Economic Growth We Would Need To
A. Increase The Level Of Capital.
B. Reduce The Level Of Labor.
C. Spend More On Military Goods.
D. Spend More On Consumer Goods.
2-4
MACROECONOMICS THEORIES AND
POLICIES, 10TH EDITION: RICHARD
T. YROYEN LATEST UPDATE
2025/2026 A+
2-1
,TABLE OF CONTENTS
PART ONE: INTRODUCTION AND MEASUREMENT
Chapter 1: Introduction
Chapter 2: Measurement of Macroeconomic Variables
PART TWO: CLASSICAL ECONOMICS AND THE KEYNESIAN REVOLUTION
Chapter 3: Classical Macroeconomics (I): Equilibrium Output and Employment
Chapter 4: Classical Macroeconomics (II): Money, Prices, and Interest
Chapter 5: The Keynesian System (I):The Role of Aggregate Demand
Chapter 6: The Keynesian System (II): Money, Interest, and Income
Chapter 7: The Keynesian System (III): Policy Effects in the IS—LM Model
Chapter 8: The Keynesian System (IV): Aggregate Supply and Demand
PART THREE: MACROECONOMIC THEORY AFTER KEYNES
Chapter 9: The Monetarist Counterrevolution
Chapter 10: Output, Inflation, and Unemployment: Alternative Views
Chapter 11: New Classical Economics
Chapter 12: Real Business Cycles and New Keynesian Economics
Chapter 13: Macroeconomic Models :A Summary
PART FOUR: OPEN ECONOMY MACROECONOMICS
Chapter 14: Exchange Rates and the International Monetary System
Chapter 15: Monetary and Fiscal Policy in the Open Economy
PART FIVE: ECONOMIC POLICY
Chapter 16: Money, the Banking System, and Interest Rates
Chapter 17: Optimal Monetary Policy
Chapter 18: Fiscal Policy
PART SIX: ECONOMIC GROWTH
Chapter 19: Policies for Intermediate-Run Growth
Chapter 20: Long-Run Economic Growth: Origins of the Wealth of Nations
2-2
, Chapter 02
Resource Utilization
Multiple Choice Questions
1. Our Economy Operates On Its Production Possibility Curve.
A. Always
B. Sometimes
C. Never
2. Which Statement Is True?
A. Entrepreneurial Ability Is In Short Supply In The U.S.
B. Land, Labor And Capital May Be Considered Passive Resources.
C. The Concept Of Opportunity Cost Is Irrelevant When There Is Scarcity.
D. None Of These Statements Are True.
3. Which One Of The Following Is The Most Accurate?
A. In Recent Years Our Economy Was At Full Employment Until 2010.
B. Our Economy Operated Outside Of Its Production Possibilities Curve In 2009 And 2010.
C. Our Economy Is Currently Operating On Its Production Possibilities Curve.
D. Our Economy Is Currently Operation Inside Its Production Possibilities Curve.
4. In Our Economy
A. There Is No Need To Economize.
B. We Rarely Have To Economize.
C. Only The Rich Have To.
D. Nearly Everyone Has To Economize.
5. The Term "The Affluent Society" Was Coined By
A. Michael Harrington.
B. John Kenneth Galbraith.
C. Karl Marx.
D. Adam Smith.
2-3
, 6. Each Of The Following Is An Example Of An Economic Resource Except
A. Land.
B. Money.
C. Capital.
D. Labor.
7. Statement I. Employment Discrimination Causes Underemployment.
Statement Ii. The Concept Of Opportunity Cost Has Little Validity In The Global Economy.
A. Statement I Is True And Statement Ii Is False.
B. Statement Ii Is True And Statement I Is False.
C. Both Statements Are True.
D. Both Statements Are False.
8. Our Economy Would Be Operating At Full Employment With Labor Unemployment Rate Of
Percent And A Capacity Utilization Rate Of Percent.
A. 5; 95
B. 5; 85
C. 10; 95
D. 10; 85
9. Which Statement Is True?
A. On The Production Possibilities Frontier We Have Zero Unemployment.
B. On The Production Possibilities Frontier 95 Percent Of The Labor Force Is Employed.
C. To Get Out Of A Recession, We Must Produce At Some Point Beyond Our Production
Possibilities Frontier.
D. To Have Economic Growth, We Must Push The Production Possibilities Frontier Inward.
10. In Order To Raise Our Rate Of Economic Growth We Would Need To
A. Increase The Level Of Capital.
B. Reduce The Level Of Labor.
C. Spend More On Military Goods.
D. Spend More On Consumer Goods.
2-4
