Macroeconomics, 10th Edition – N. Gregory Mankiw – Complete Test Bank with Answers

TEST BANK FOR
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MACROECONOMICS, 10TH
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ert EDITIONN.GREGORYMANKIW
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,Chapter 1. The Science of Macroeconomics ert ert ert ert ert




Macroeconomicsdoesnot tryto answerthe questionof: ert ert ert ert ert ert ert ert




whysomecountries experiencerapid growth.
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what is the rate of return on education. ert ert ert ert ert ert ert




whysomecountries have high rates of inflation.
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what causes recessionsand depressions. ert ert ert ert




A typical trend during a recession is that:
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theunemploymentratefalls.
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thepopularityof the incumbentpresident rises.
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incomes fall. ert




the inflation rate rises.
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Macroeconomicsis the studyof the: ert ert ert ert ert




activities of individual units of the economy. ert ert ert ert ert ert




decisionmakingbyhouseholdsandfirms. ert ert ert ert




economyas a whole. ert ert ert




interactionof firms and householdsin the marketplace. ert ert ert ert ert ert ert




Thestudyof the economyas a whole is called:
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household economics. ert




business economics. ert




microeconomics.
macroeconomics.


Theabilityof macroeconomiststo predict the futurecourse of economicevents:
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is no betterthan a meteorologist's abilityto predict the next month's weather.
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is much better than a meteorologist'sabilityto predict the next month's weather.
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has gotten worseover time. ert ert ert ert




is less precise than it was in the 1920s.
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Which of the combinationslisted is not a U.S. president and an important economic issue
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of his administration?
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President Carter, inflation ert ert




President Reagan, budget deficits ert ert ert




PresidentG. H. W. Bush, budget deficits ert ert ert ert ert ert




PresidentClinton,inflation ert ert




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, All of the followingare types of macroeconomicsdata except the:
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price of a computer. ert ert ert




growth rate of real GDP. ert ert ert ert




inflation rate. ert




unemployment rate. ert




All of the following except
ert ert ert ert ert are important macroeconomicvariables.
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real GDP ert




the unemployment rate ert ert




the marginalrate of substitution ert ert ert ert




the inflation rate ert ert




The total income of everyonein the economyadjusted for the level of base year prices is called:
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a recession. ert




an inflation. ert




real GDP. ert




a business fluctuation. ert ert




A measureof how fast the general level of prices is risingis called the:
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growth rate of real GDP. ert ert ert ert




inflation rate. ert




unemployment rate. ert




market-clearing rate. ert




The inflation rate is a measureof how fast:
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the total income of the economyis growing. ert ert ert ert ert ert ert




unemploymentin the economyis increasing. ert ert ert ert ert




the general level of prices in the economyis rising.
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the number of jobs in the economyis expanding. ert ert ert ert ert ert ert ert




Real GDP ert over time, and the growth rate of real GDP ert ert ert ert ert ert ert ert ert ert .
grows; fluctuates ert




is steady; is steady ert ert ert




grows; is steady ert ert




is steady; fluctuates ert ert




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, Two striking features of a graph of U.S. real GDP per capita over the twentieth century are the:
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overall upward trend interruptedbya large downturndue to the economic ert ert ert ert ert ert ert ert ert ert ert




depression in the 1930s. ert ert ert ert




nearlyconstantlevel with a large downturnin the 1930s. ert ert ert ert ert ert ert ert ert




downward trend in the first half of the centuryfollowed bythe upward trend in the second ert ert ert ert ert ert ert ert ert ert ert ert ert ert ert ert




half. ert




constant level in the first half of the centuryfollowed bythe upward trend in the second ert ert ert ert ert ert ert ert ert ert ert ert ert ert ert ert




half. ert




In the U.S. economytoday, real GDP per person, compared with its level in 1900, is about:
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50 percent higher. ert ert




twice as high. ert ert




three times as high. ert ert ert




eight times as high. ert ert ert




Recessionsareperiodswhenreal GDP: ert ert ert ert ert




increases slowly. ert




increases rapidly. ert




decreases mildly. ert




decreases severely. ert




Comparedwith real GDP duringa recession, real GDP duringa depression:
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increases more rapidly. ert ert




increases at approximatelythe same rate. ert ert ert ert ert




decreasesat approximatelythe same rate. ert e rt ert ert ert




decreases more severely. ert ert




A severerecession is called a(n):
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depression.
deflation.
exogenous event. ert




market-clearing assumption. ert




Theannual inflation rate in the United States averaged:
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nearlyzero between 1900 and 1950. ert ert ert ert ert




nearlyzerobetween 1950 and 2000. ert ert ert ert ert




about 10 percent between 1900 and 1950. ert ert ert ert ert ert




about 10 percent between 1950 and 2000. ert ert ert ert ert ert




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