Bmal 590 Week 6-Macroeconomics Exam questions and answers latest 2025/2026

Bmal 590 Week 6-Macroeconomics Exam questions and
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answers latest 2025/2026
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ro Microeconomics - Answer focuses on individual action and how those actions have ro ro ro ro ro ro ro ro ro ro ro ro




ro consequences for the availability, distribution, and utilization of scarce resources.
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ro Macroeconomics - Answer examines the economy as a whole. ro ro ro ro ro ro ro ro ro




ro Monetary Policy - Answer s the set of tools used by a country's central bank (the Federal Reserve
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ro in the U.S.) to regulate the availability of money in the economy.
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ro Fiscal Policy - Answer refers to government policies related to taxes and how resources are
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ro allocated among competing priorities - defense, education, infrastructure, healthcare, and safety
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ro and security - to name a few.
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ro Supply side or growth policies - Answer are those that try to improve aggregate supply rather
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ro than addressing aggregate demand.
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ro An economic recession refers to: - Answer a period, typically two consecutive quarters, during
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ro which aggregate output declines.
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ro Deflation refers to: - Answer a decrease in the overall price level.
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ro Macroeconomics is the branch of economics that deals with: - Answer the economy as a whole. ro ro ro ro ro ro ro ro ro ro ro ro ro ro ro ro




The school of economic thought that argues that price and wage rigidities do not provide the
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only reasoning for an active macroeconomic policy framework is referred to as: - Answer Neo-
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Keynesians.

, ro The primary driver for the emergence of macroeconomic theory as we know it today was the
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ro failure of: - Answer the classical model to explain the prolonged existence of high unemployment
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ro during the great depression. ro ro ro




ro The approach that uses monetary policy to stabilize the economy is known as: - Answer fine
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ro tuning of demand. ro ro




ro According to Keynesian theory, the level of employment is determined by: - Answer the level of
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ro aggregate demand for goods and services. ro ro ro ro ro




ro Assume you are an author and your new book is priced at $9.95. The publisher expects to sell
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ro 5,000 copies at this price. Suppose the publisher decides to offer the book at $8.95, the publisher
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ro can expect to sell: - Answer more than 5,000 copies.
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ro At a price of $99.95, the manufacturer of a popular herbal supplement is willing to produce
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ro 10,000 packed units of the supplement. At a price of $149.95, it is likely that the manufacturer
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ro would be willing to produce: - Answer more than 10,000 packed units.
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ro If ultrabook manufacturers are producing ultrabooks faster than people want to buy them: -
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ro Answer If ultrabook manufacturers are producing ultrabooks faster than people want to buy
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ro them:



ro Disposable income is that part of a household's income remaining after the deduction of: -
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ro Answer income tax. ro ro




ro Total consumption divided by total income would give us: - Answer the average propensity to
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ro consume.