Macroeconomics Questions
Explore questions in the Macroeconomics category that you can ask Spark.E!
If your annual money income rises by 50% while the prices of things you buy rise by 100% then your...- Real income has fallen- Real income has risen- Money income has fallen- Real income is not affected
A shortage will develop when- The quantity supplied of a good is greater than the quantity demanded- The equilibrium quantity supplied is lower than the actual quantity supplied- The government provides subsidies to producers- The market price is below the equilibrium price
One reason the federal government might reduce taxes is to... - Increase consumer spending and stimulate the economy- Decrease business spending on plant and equipment- Slow down a rapid rise in interest rates- Slow down the rate of inflation
When commercial banks increase their loans to businesses and consumers, this usually results in- An increase in the nation's money supplies- An increase in the government control over the economy- A decrease in the spending power of consumers and businesses- An increase in the bank excess reserves
Those who believe people should be taxed according to their ability to pay would most likely favor...- A progressive income tax- A general sales tax- A residential property tax- A excise tax
A nation has a deficit in its international balance of trade when...- It invests more in other countries than it receives from them- It buys goods or greater value from other countries than it sells to them- It sells goods of greater value to other countries than it buys from them- Government expenditures exceed tax revenue
The variable most commonly used to monitor short-run changes in the economy because it is the most comprehensive measure of economic activity.
According to classical macroeconomic theory and monetary neutrality, changes in the money supply affect
When the recession ends and real GDP starts to expand, the unemployment rate
when real GDP declines, the rate of unemployment
What is the factor by which initial change is magnified (multiplier = change in real GDP/initial change in spending)?
What is the natural rate of unemployment presently (2018) (frictional plus structural)
who does unanticipated inflation benefit?
Xn if you do imports do u want a weak or a strong dollar
Product Market -> Firms or Businesses
during a recession, who suffers greater output and employment declines than industries that produce services or non-durable consumer goods?
Xn if you do exports do u want a weak or a strong dollar
Resource Market -> Households or Individuals
Firms or Businesses -> Resource Market
The nominal interest rate equals the real interest rate ________ the inflation rate.