TEST BANK FOR
MACROECONOMICS, 10TH
EDITION N. GREGORY MANKIW
,Page 1
,Chapter 1. The Science of Macroeconomics
Macroeconomics does not try to answer the question of:
why some countries experience rapid growth.
what is the rate of return on education.
why some countries have high rates of inflation.
what causes recessions and depressions.
A typical trend during a recession is that:
the unemployment rate falls.
the popularity of the incumbent president rises.
incomes fall.
the inflation rate rises.
Macroeconomics is the study of the:
activities of individual units of the economy.
decisionmaking by households and firms.
economy as a whole.
interaction of firms and households in the marketplace.
The study of the economy as a whole is called:
household economics.
business economics.
microeconomics.
macroeconomics.
The ability of macroeconomists to predict the future course of economic events:
is no better than a meteorologist's ability to predict the next month's weather.
is much better than a meteorologist's ability to predict the next month's weather.
has gotten worse over time.
is less precise than it was in the 1920s.
Which of the combinations listed is not a U.S. president and an important economic
issue of his administration?
President Carter, inflation
President Reagan, budget deficits
President G. H. W. Bush, budget deficits
President Clinton, inflation
Page 2
, All of the following are types of macroeconomics data except the:
price of a computer.
growth rate of real GDP.
inflation rate.
unemployment rate.
All of the following except are important macroeconomic variables.
real GDP
the unemployment rate
the marginal rate of substitution
the inflation rate
The total income of everyone in the economy adjusted for the level of base year prices is
called:
a recession.
an inflation.
real GDP.
a business fluctuation.
A measure of how fast the general level of prices is rising is called the:
growth rate of real GDP.
inflation rate.
unemployment rate.
market-clearing rate.
The inflation rate is a measure of how fast:
the total income of the economy is growing.
unemployment in the economy is increasing.
the general level of prices in the economy is rising.
the number of jobs in the economy is expanding.
Real GDP over time, and the growth rate of real GDP .
grows; fluctuates
is steady; is steady
grows; is steady
is steady; fluctuates
Page 3
MACROECONOMICS, 10TH
EDITION N. GREGORY MANKIW
,Page 1
,Chapter 1. The Science of Macroeconomics
Macroeconomics does not try to answer the question of:
why some countries experience rapid growth.
what is the rate of return on education.
why some countries have high rates of inflation.
what causes recessions and depressions.
A typical trend during a recession is that:
the unemployment rate falls.
the popularity of the incumbent president rises.
incomes fall.
the inflation rate rises.
Macroeconomics is the study of the:
activities of individual units of the economy.
decisionmaking by households and firms.
economy as a whole.
interaction of firms and households in the marketplace.
The study of the economy as a whole is called:
household economics.
business economics.
microeconomics.
macroeconomics.
The ability of macroeconomists to predict the future course of economic events:
is no better than a meteorologist's ability to predict the next month's weather.
is much better than a meteorologist's ability to predict the next month's weather.
has gotten worse over time.
is less precise than it was in the 1920s.
Which of the combinations listed is not a U.S. president and an important economic
issue of his administration?
President Carter, inflation
President Reagan, budget deficits
President G. H. W. Bush, budget deficits
President Clinton, inflation
Page 2
, All of the following are types of macroeconomics data except the:
price of a computer.
growth rate of real GDP.
inflation rate.
unemployment rate.
All of the following except are important macroeconomic variables.
real GDP
the unemployment rate
the marginal rate of substitution
the inflation rate
The total income of everyone in the economy adjusted for the level of base year prices is
called:
a recession.
an inflation.
real GDP.
a business fluctuation.
A measure of how fast the general level of prices is rising is called the:
growth rate of real GDP.
inflation rate.
unemployment rate.
market-clearing rate.
The inflation rate is a measure of how fast:
the total income of the economy is growing.
unemployment in the economy is increasing.
the general level of prices in the economy is rising.
the number of jobs in the economy is expanding.
Real GDP over time, and the growth rate of real GDP .
grows; fluctuates
is steady; is steady
grows; is steady
is steady; fluctuates
Page 3
