Principles of Macroeconomics, 10th Edition by N. Gregory Mankiw – Complete Test Bank (Chapters 1–23)

TEST BANK FOR
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MACROECONOMICS, 10TH aw




aw EDITIONN.GREGORYMANKIW
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,Chapter 1. The Science of Macroeconomics aw aw aw aw aw




Macroeconomicsdoesnottrytoanswerthequestionof: aw aw aw aw aw aw aw aw




why some countries experience rapid growth.
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what is therateof return on education. aw aw aw aw aw aw aw




whysomecountrieshavehighratesofinflation.
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what causes recessions and depressions.
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Atypicaltrendduringarecessionisthat: the
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unemployment rate falls.
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thepopularityoftheincumbentpresidentrises.
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incomes fall.
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theinflationraterises.
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Macroeconomicsisthestudyof the: aw aw aw aw aw




activitiesofindividualunitsoftheeconomy. aw aw aw aw aw aw




decisionmaking by households and firms.
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economy as a whole.
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interactionof firmsandhouseholdsin themarketplace. aw aw aw aw aw aw aw




Thestudyoftheeconomyasawholeiscalled: household
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economics.
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businesseconomics. aw




microeconomics.
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macroeconomics.
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Theabilityofmacroeconomiststopredictthefuturecourseofeconomicevents: isno
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betterthanameteorologist'sabilityto predictthenext month'sweather.
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ismuchbetterthanameteorologist'sabilitytopredictthenextmonth'sweather. has
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gotten worse over time.
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is less precisethanit was in the 1920s.
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Whichof thecombinationslistedisnot aU.S.presidentandan importanteconomic issue of
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his administration?
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President Carter, inflation aw aw




PresidentReagan,budgetdeficits
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PresidentG.H.W.Bush,budgetdeficits aw aw aw aw aw aw




President Clinton, inflation
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, Allofthefollowingaretypesofmacroeconomicsdataexceptthe: price of a
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computer. aw




growthrateofrealGDP. aw aw aw aw




inflation rate.
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unemployment rate.
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All of the following except
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real GDP aw aw




the unemployment rate aw aw




themarginalrateof substitution the aw aw aw aw aw




inflation rate
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Thetotal incomeofeveryonein the economyadjustedfor thelevelof base yearpricesis called:
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a recession. aw




an inflation.
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real GDP. aw aw




abusinessfluctuation. aw aw




Ameasureofhowfastthegenerallevelofpricesisrisingiscalledthe: growth
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rate of real GDP.
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inflation rate. aw




unemployment rate.
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market-clearingrate.
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Theinflationrateis ameasureof how fast:
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thetotal incomeof theeconomyis growing. aw aw aw aw aw aw aw




unemploymentin theeconomyis increasing.
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thegenerallevelofpricesintheeconomyisrising. the aw aw aw aw aw aw aw aw aw aw




number of jobs in the economyis expanding.
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Real GDP aw over time, and the growth rate of real GDP aw aw aw aw aw aw aw aw aw aw .
grows; fluctuates
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issteady;issteady aw aw aw




grows; is steady
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is steady;fluctuates aw aw




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, Twostrikingfeaturesof a graphof U.S. real GDPper capitaover thetwentiethcentury are the:
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overallupwardtrendinterruptedbyalargedownturnduetotheeconomic aw aw aw aw aw aw aw aw aw aw aw




depression in the 1930s. aw aw aw aw




nearlyconstantlevel withalargedownturnin the 1930s. aw aw aw aw aw aw aw aw aw




downwardtrend in thefirst halfof thecenturyfollowedbythe upwardtrendin the second aw aw aw aw aw aw aw aw aw aw aw aw aw aw aw aw




half. aw




constantlevel in the first halfof thecenturyfollowedbytheupwardtrendin the second aw aw aw aw aw aw aw aw aw aw aw aw aw aw aw aw




half. aw




IntheU.S.economytoday, realGDPperperson,comparedwithitslevelin 1900,is about:
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50 percent higher. aw aw




twice as high.
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threetimesashigh.
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eight timesashigh.
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Recessionsareperiodswhenreal GDP: aw aw aw aw aw




increases slowly.
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increases rapidly. aw




decreases mildly.
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decreasesseverely.
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Compared with real GDP during a recession, real GDP during a depression:aw aw aw aw aw aw aw aw aw aw aw




increases more rapidly.
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increases at approximately the same rate. aw aw aw aw aw




decreases at approximately the same rate.
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decreases more severely.
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Asevererecessioniscalleda(n):
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depression. aw




deflation.
exogenousevent.
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market-clearingassumption. aw




TheannualinflationrateintheUnitedStatesaveraged:
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nearly zero between 1900 and 1950.
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nearlyzerobetween1950and2000. aw aw aw aw aw




about10 percentbetween1900and1950. aw aw aw aw aw aw




about10percentbetween1950and2000. aw aw aw aw aw aw




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