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

TEST BANK FOR
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MACROECONOMICS, 10TH qq




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,Chapter1.The Science of Macroeconomics qq qq qq qq qq




Macroeconomicsdoesnottrytoanswerthequestionof: q q q q q q q q




why some countries experience rapid growth.
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whatis therateof return oneducation. qq qq qq q qq qq qq




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: q q q q qq




activitiesofindividualunitsoftheeconomy. q q q q q q




decisionmaking by households and firms.
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economy as a whole.
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interactionof firmsandhouseholdsinthemarketplace. q qq q q q qq q




Thestudyoftheeconomyasawholeiscalled: household
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economics.
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businesseconomics. q




microeconomics.
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macroeconomics.
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Theabilityofmacroeconomiststopredictthefuturecourseofeconomicevents: isno
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betterthanameteorologist'sabilityto predictthenextmonth'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 the1920s.
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Whichofthecombinationslistedisnot aU.S.presidentandanimportanteconomic issue of
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his administration?
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President Carter, inflation qq qq




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




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




growthrateofrealGDP. q q q q




inflation rate.
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unemployment rate.
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All of the following except
qq qq qq qq qq areimportantmacroeconomicvariables.
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real GDPqq qq




theunemploymentrate qq qq




themarginalrateofsubstitution the q q qq qq qq




inflation rate
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Thetotal incomeof everyonein theeconomyadjustedforthelevelofbase yearpricesis called:
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a recession. q




an inflation.
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real GDP. qq qq




abusinessfluctuation. q q




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




unemploymentrate.
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market-clearingrate.
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Theinflationrateis ameasureof howfast:
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thetotal incomeof theeconomyis growing. q qq q qq qq q qq




unemploymentintheeconomyis increasing.
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thegenerallevelofpricesintheeconomyisrising. the
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number of jobs in the economyis expanding.
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Real GDP qq over time, and the growth rate of real GDP qq qq qq qq qq qq qq qq qq qq .
grows; fluctuates
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issteady;issteady q q q




grows; is steady
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is steady;fluctuates qq q




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, Twostrikingfeaturesof a graphof U.S. real GDPpercapitaoverthetwentiethcentury are the:
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overallupwardtrendinterruptedbyalargedownturnduetotheeconomic q q q q q q q q q qq q




depression in the 1930s. qq qq qq qq




nearlyconstantlevel withalargedownturnin the 1930s. q q qq qq q q q qq qq




downwardtrendin thefirst halfofthecenturyfollowedbytheupwardtrendin the second half. q qq qq q qq qq qq qq q q q q q q qq qq qq




constantlevel in thefirst halfofthecenturyfollowedbytheupwardtrendin the second
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half. qq




IntheU.S.economytoday, realGDPperperson,comparedwithitslevelin1900,is about:
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50 percent higher. qq qq




twice as high.
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threetimesashigh.
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eighttimesashigh.
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Recessionsareperiodswhenreal GDP: q q q q qq




increases slowly.
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increases rapidly. qq




decreases mildly.
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decreasesseverely.
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Compared with real GDP during a recession, real GDP during a depression:
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increases more rapidly.
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increases at approximately the same rate. q qq q q q




decreases at approximately the same rate.
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decreases more severely.
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Asevererecessioniscalleda(n):
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depression.
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deflation.
exogenousevent.
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market-clearingassumption. q




TheannualinflationrateintheUnitedStatesaveraged:
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nearly zero between 1900 and 1950.
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nearlyzerobetween1950and2000. q q qq q q




about10 percentbetween1900and1950. q qq q q q q




about10percentbetween1950and2000. q q q q q q




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