TEST BANK FOR
nn nn
MACROECONOMICS, 10TH
nn nn
nn EDITIONN. GREGORYMANKIW
nn nn nn
,Chapter 1. The Science of Macroeconomics
nn nn nn nn nn
Macroeconomics nndoes nnnot nntry nnto nnanswer nnthe nnquestion nnof:
why nnsome nncountries nnexperience nnrapid nngrowth.
what nnis nnthe nnrate nnof nnreturn nnon nneducation.
why nnsome nncountries nnhave nnhigh nnrates nnof nninflation.
what nncauses nnrecessions nnand nndepressions.
A nntypical nntrend nnduring nna nnrecession nnis nnthat:
the nnunemployment nnrate nnfalls.
the nnpopularity nnof nnthe nnincumbent nnpresident nnrises.
incomes nnfall.
the nninflation nnrate nnrises.
Macroeconomics nnis nnthe nnstudy nnof nnthe:
activities nnof nnindividual nnunits nnof nnthe nneconomy.
decisionmaking nnby nnhouseholds nnand nnfirms.
economy nnas nna nnwhole.
interaction nnof nnfirms nnand nnhouseholds nnin nnthe nnmarketplace.
The nnstudy nnof nnthe nneconomy nnas nna nnwhole nnis nncalled:
household nneconomics.
business nneconomics.
microeconomics.
macroeconomics.
The nnability nnof nnmacroeconomists nnto nnpredict nnthe nnfuture nncourse nnof nneconomic nnevents:
is nnno nnbetter nnthan nna nnmeteorologist's nnability nnto nnpredict nnthe nnnext nnmonth's nnweather.
is nnmuch nnbetter nnthan nna nnmeteorologist's nnability nnto nnpredict nnthe nnnext nnmonth's nnweather.
has nngotten nnworse nnover nntime.
is nnless nnprecise nnthan nnit nnwas nnin nnthe nn1920s.
Which nnof nnthe nncombinations nnlisted nnis nnnot nna nnU.S. nnpresident nnand nnan nnimportant
nneconomic nnissue nnof nnhis nnadministration?
President nnCarter, nninflation
President nnReagan, nnbudget nndeficits
President nnG. nnH. nnW. nnBush, nnbudget nndeficits
President nnClinton, nninflation
Page nn1
, All nnof nnthe nnfollowing nnare nntypes nnof nnmacroeconomics nndata nnexcept nnthe:
price nnof nna nncomputer.
growth nnrate nnof nnreal nnGDP.
inflation nnrate.
unemployment nnrate.
All nnof nnthe nnfollowing nnexcept nn are nnimportant nnmacroeconomic nnvariables.
real nnGDP
the nnunemployment nnrate
the nnmarginal nnrate nnof nnsubstitution
the nninflation nnrate
The nntotal nnincome nnof nneveryone nnin nnthe nneconomy nnadjusted nnfor nnthe nnlevel nnof nnbase nnyear
nnprices nnis nncalled:
a n n recession.
an nninflation.
real nnGDP.
a nnbusiness nnfluctuation.
A nnmeasure nnof nnhow nnfast nnthe nngeneral nnlevel nnof nnprices nnis nnrising nnis nncalled nnthe:
growth nnrate nnof nnreal nnGDP.
inflation nnrate.
unemployment nnrate.
market-clearing nnrate.
The nninflation nnrate nnis nna nnmeasure nnof nnhow nnfast:
the nntotal nnincome nnof nnthe nneconomy nnis nngrowing.
unemployment nnin nnthe nneconomy nnis nnincreasing.
the nngeneral nnlevel nnof nnprices nnin nnthe nneconomy nnis nnrising.
the nnnumber nnof nnjobs nnin nnthe nneconomy nnis nnexpanding.
Real nnGDP nn over nntime, nnand nnthe nngrowth nnrate nnof nnreal nnGDP nn .
grows; nnfluctuates
is nnsteady; nnis nnsteady
grows; nnis nnsteady
is nnsteady; nnfluctuates
Page nn2
, Two nnstriking nnfeatures nnof nna nngraph nnof nnU.S. nnreal nnGDP nnper nncapita nnover nnthe nntwentieth
nncentury nnare nnthe:
overall nnupward nntrend nninterrupted nnby nna nnlarge nndownturn nndue nnto nnthe
nneconomic nndepression nnin nnthe nn1930s.
nearly nnconstant nnlevel nnwith nna nnlarge nndownturn nnin nnthe nn1930s.
downward nntrend nnin nnthe nnfirst nnhalf nnof nnthe nncentury nnfollowed nnby nnthe nnupward nntrend
nnin nnthe nnsecond nnhalf.
constant nnlevel nnin nnthe nnfirst nnhalf nnof nnthe nncentury nnfollowed nnby nnthe nnupward nntrend
nnin nnthe nnsecond nnhalf.
In nnthe nnU.S. nneconomy nntoday, nnreal nnGDP nnper nnperson, nncompared nnwith nnits nnlevel nnin
nn1900, nnis nnabout:
50 nnpercent nnhigher.
twice nnas nnhigh.
three nntimes nnas nnhigh.
eight nntimes nnas nnhigh.
Recessions nnare nnperiods nnwhen nnreal nnGDP:
increases nnslowly.
increases nnrapidly.
decreases nnmildly.
decreases nnseverely.
Compared nnwith nnreal nnGDP nnduring nna nnrecession, nnreal nnGDP nnduring nna nndepression:
increases nnmore nnrapidly.
increases nnat nnapproximately nnthe nnsame nnrate.
decreases nnat nn approximately nnthe nnsame nnrate.
decreases nnmore nnseverely.
A nnsevere nnrecession nnis nncalled nna(n):
depression.
deflation.
exogenous nnevent.
market-clearing nnassumption.
The nnannual nninflation nnrate nnin nnthe nnUnited nnStates nnaveraged:
nearly nnzero nnbetween nn1900 nnand nn1950.
nearly nnzero nnbetween nn1950 nnand nn2000.
about nn10 nnpercent nnbetween nn1900 nnand nn1950.
about nn10 nnpercent nnbetween nn1950 nnand nn2000.
Page nn3
nn nn
MACROECONOMICS, 10TH
nn nn
nn EDITIONN. GREGORYMANKIW
nn nn nn
,Chapter 1. The Science of Macroeconomics
nn nn nn nn nn
Macroeconomics nndoes nnnot nntry nnto nnanswer nnthe nnquestion nnof:
why nnsome nncountries nnexperience nnrapid nngrowth.
what nnis nnthe nnrate nnof nnreturn nnon nneducation.
why nnsome nncountries nnhave nnhigh nnrates nnof nninflation.
what nncauses nnrecessions nnand nndepressions.
A nntypical nntrend nnduring nna nnrecession nnis nnthat:
the nnunemployment nnrate nnfalls.
the nnpopularity nnof nnthe nnincumbent nnpresident nnrises.
incomes nnfall.
the nninflation nnrate nnrises.
Macroeconomics nnis nnthe nnstudy nnof nnthe:
activities nnof nnindividual nnunits nnof nnthe nneconomy.
decisionmaking nnby nnhouseholds nnand nnfirms.
economy nnas nna nnwhole.
interaction nnof nnfirms nnand nnhouseholds nnin nnthe nnmarketplace.
The nnstudy nnof nnthe nneconomy nnas nna nnwhole nnis nncalled:
household nneconomics.
business nneconomics.
microeconomics.
macroeconomics.
The nnability nnof nnmacroeconomists nnto nnpredict nnthe nnfuture nncourse nnof nneconomic nnevents:
is nnno nnbetter nnthan nna nnmeteorologist's nnability nnto nnpredict nnthe nnnext nnmonth's nnweather.
is nnmuch nnbetter nnthan nna nnmeteorologist's nnability nnto nnpredict nnthe nnnext nnmonth's nnweather.
has nngotten nnworse nnover nntime.
is nnless nnprecise nnthan nnit nnwas nnin nnthe nn1920s.
Which nnof nnthe nncombinations nnlisted nnis nnnot nna nnU.S. nnpresident nnand nnan nnimportant
nneconomic nnissue nnof nnhis nnadministration?
President nnCarter, nninflation
President nnReagan, nnbudget nndeficits
President nnG. nnH. nnW. nnBush, nnbudget nndeficits
President nnClinton, nninflation
Page nn1
, All nnof nnthe nnfollowing nnare nntypes nnof nnmacroeconomics nndata nnexcept nnthe:
price nnof nna nncomputer.
growth nnrate nnof nnreal nnGDP.
inflation nnrate.
unemployment nnrate.
All nnof nnthe nnfollowing nnexcept nn are nnimportant nnmacroeconomic nnvariables.
real nnGDP
the nnunemployment nnrate
the nnmarginal nnrate nnof nnsubstitution
the nninflation nnrate
The nntotal nnincome nnof nneveryone nnin nnthe nneconomy nnadjusted nnfor nnthe nnlevel nnof nnbase nnyear
nnprices nnis nncalled:
a n n recession.
an nninflation.
real nnGDP.
a nnbusiness nnfluctuation.
A nnmeasure nnof nnhow nnfast nnthe nngeneral nnlevel nnof nnprices nnis nnrising nnis nncalled nnthe:
growth nnrate nnof nnreal nnGDP.
inflation nnrate.
unemployment nnrate.
market-clearing nnrate.
The nninflation nnrate nnis nna nnmeasure nnof nnhow nnfast:
the nntotal nnincome nnof nnthe nneconomy nnis nngrowing.
unemployment nnin nnthe nneconomy nnis nnincreasing.
the nngeneral nnlevel nnof nnprices nnin nnthe nneconomy nnis nnrising.
the nnnumber nnof nnjobs nnin nnthe nneconomy nnis nnexpanding.
Real nnGDP nn over nntime, nnand nnthe nngrowth nnrate nnof nnreal nnGDP nn .
grows; nnfluctuates
is nnsteady; nnis nnsteady
grows; nnis nnsteady
is nnsteady; nnfluctuates
Page nn2
, Two nnstriking nnfeatures nnof nna nngraph nnof nnU.S. nnreal nnGDP nnper nncapita nnover nnthe nntwentieth
nncentury nnare nnthe:
overall nnupward nntrend nninterrupted nnby nna nnlarge nndownturn nndue nnto nnthe
nneconomic nndepression nnin nnthe nn1930s.
nearly nnconstant nnlevel nnwith nna nnlarge nndownturn nnin nnthe nn1930s.
downward nntrend nnin nnthe nnfirst nnhalf nnof nnthe nncentury nnfollowed nnby nnthe nnupward nntrend
nnin nnthe nnsecond nnhalf.
constant nnlevel nnin nnthe nnfirst nnhalf nnof nnthe nncentury nnfollowed nnby nnthe nnupward nntrend
nnin nnthe nnsecond nnhalf.
In nnthe nnU.S. nneconomy nntoday, nnreal nnGDP nnper nnperson, nncompared nnwith nnits nnlevel nnin
nn1900, nnis nnabout:
50 nnpercent nnhigher.
twice nnas nnhigh.
three nntimes nnas nnhigh.
eight nntimes nnas nnhigh.
Recessions nnare nnperiods nnwhen nnreal nnGDP:
increases nnslowly.
increases nnrapidly.
decreases nnmildly.
decreases nnseverely.
Compared nnwith nnreal nnGDP nnduring nna nnrecession, nnreal nnGDP nnduring nna nndepression:
increases nnmore nnrapidly.
increases nnat nnapproximately nnthe nnsame nnrate.
decreases nnat nn approximately nnthe nnsame nnrate.
decreases nnmore nnseverely.
A nnsevere nnrecession nnis nncalled nna(n):
depression.
deflation.
exogenous nnevent.
market-clearing nnassumption.
The nnannual nninflation nnrate nnin nnthe nnUnited nnStates nnaveraged:
nearly nnzero nnbetween nn1900 nnand nn1950.
nearly nnzero nnbetween nn1950 nnand nn2000.
about nn10 nnpercent nnbetween nn1900 nnand nn1950.
about nn10 nnpercent nnbetween nn1950 nnand nn2000.
Page nn3
