Macro Econ: Taylor Econ Study Guide Exam.

Macro Econ: Taylor Econ Study Guide Exam. 1. ________________ economists place an emphasis on __________ run economic performance. A. Phillips; short B. Keynesian; long C. Neoclassical; long D. Says; short - CORRECT ANSWER C. Neoclassical 2. The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________. A. long term growth; cyclical unemployment B. potential GDP; natural rate of unemployment C. natural level of output; cyclical unemployment rate D. real GDP; natural rate of unemployment - CORRECT ANSWER B. potential GDP; natural rate of unemployment 3. Which of the following is a building block of neoclassical economics? A. the size of the economy is determined by real GDP B. sticky wages and prices C. aggregate demand model D. wages and prices will adjust in a flexible manner - CORRECT ANSWER D. wages and prices will adjust in a flexible manner 4. Which of the following government policies would be supported by neoclassical macroeconomic assumptions? A. focus on long-term growth and on controlling inflation B. focus on short-term recession and controlling inflation C. focus on combating depression and cyclical unemployment D. focus on real GDP and cyclical unemployment - CORRECT ANSWER A. focus on long-term growth and on controlling inflation 5. Which of the following represents a Keynesian point of view of macroeconomics? A. focus on long-term growth in the economy B. aggregate supply is the primary determinate of economic output C. creating increases in aggregate demand to reduce unemployment D. vertical aggregate supply - CORRECT ANSWER C. creating increases in aggregate demand to reduce unemployment 6. From a neoclassical viewpoint, government should focus less on: A. long-term growth. B. controlling inflation. C. aggregate supply. D. cyclical unemployment. - CORRECT ANSWER D. cyclical unemployment. 7. The neoclassical view holds that long-term expansion of potential GDP due to _______________________ will determine ____________________. A. economic growth; the size of the economy B. government spending; aggregate demand C. government spending; aggregate supply D. economic adjustments; cyclical unemployment - CORRECT ANSWER A. economic growth; the size of the economy 8. The Keynesian view of economics assumes that: A. the Keynesian Phillips curve is vertical. B. wages are sticky. C. the economy must focus is on long-term growth. D. economic output is primarily determined by aggregate supply. - CORRECT ANSWER B. wages are sticky.