MACROECONOMICS CERTIFICATION
EVALUATION VERIFIED QUESTIONS WITH
COMPLETE SOLUTIONS
●● Market failure may occur because
Answer: individual actions have side effects that are not properly taken
into account by the market
●● A graphical representation of the relationship between the total
quantity of goods and services demanded and the price level
Answer: aggregate demand curve
●● If banks were required to keep 100% of deposits in reserves, they
could
Answer: make no loans
●● The point on a business cycle when real GDP stops falling and
begins rising
Answer: business cycle trough
●● In the long run, changes in the money supply
Answer: affect only the price level but they do not change aggregate
output
, ●● The double coincidence of wants problem can be solved by
Answer: money
●● An inflationary gap can be closed with
Answer: a decrease in government purchases
●● Monetary policy affects GDP and the price level by
Answer: changing aggregate demand
●● The short-run aggregate supply curve is positively sloped because
Answer: wages are sticky or don't readily adjust to changes in economic
conditions in the short run
●● nominal GDP
Answer: that year's output times same year price
●● real GDP
Answer: base year price times that year's output
●● The money spent on domestically produced final goods and services
Answer: is the GDP, appears as income to someone, and appears in the
circular flow model
EVALUATION VERIFIED QUESTIONS WITH
COMPLETE SOLUTIONS
●● Market failure may occur because
Answer: individual actions have side effects that are not properly taken
into account by the market
●● A graphical representation of the relationship between the total
quantity of goods and services demanded and the price level
Answer: aggregate demand curve
●● If banks were required to keep 100% of deposits in reserves, they
could
Answer: make no loans
●● The point on a business cycle when real GDP stops falling and
begins rising
Answer: business cycle trough
●● In the long run, changes in the money supply
Answer: affect only the price level but they do not change aggregate
output
, ●● The double coincidence of wants problem can be solved by
Answer: money
●● An inflationary gap can be closed with
Answer: a decrease in government purchases
●● Monetary policy affects GDP and the price level by
Answer: changing aggregate demand
●● The short-run aggregate supply curve is positively sloped because
Answer: wages are sticky or don't readily adjust to changes in economic
conditions in the short run
●● nominal GDP
Answer: that year's output times same year price
●● real GDP
Answer: base year price times that year's output
●● The money spent on domestically produced final goods and services
Answer: is the GDP, appears as income to someone, and appears in the
circular flow model
