Macroeconomics Questions
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Refer to the graph shown below. This graph illustrates a:Keneyesian Curve.Neoclassical Curve.Phillips Curve.Labor Demand Curve.
_________________________ are a form of deposits held in banks that are available by making a cash withdrawal or writing a check.Direct depositsSavings depositsTime depositsDemand deposits
The onset of a trade deficit is most likely supported by a country's: existing trade surplus.strong economic growth.reduction in the balance of trade.increased consumption function.
What term is used to describe the maximum quantity that an economy can produce, in the context of its existing inputs, market and legal institutions? GDP deflatorAS curvepotential GDPaggregate supply
Potential GDP in the U.S. will be unaffected by ____________________. technologythe amount of capital availablethe unemployment rategovernment institutions
_______________________ happens when the economy is producing at its potential and unemployment is at the natural rate of unemployment.The foreign price effectStagflationFull employment GDPThe interest rate effect
Which will not cause an inward (left) shift in the aggregate demand curve?Pessimistic economic prediction by a prominent figureRisk of warUnfavorable election resultsIncrease in consumer or business confidence
The ____________ describes a situation where sufficient credit is available, but the economy experiences a reduction in consumption and investment. inflation rate effectinterest rate effectwealth effectprice effect
Melanie decided to save 20% of her annual earnings for 10 years so she would have a down payment for a house. After 5 years, what change in the economy would cause an increase in the purchasing power of the funds she has managed to save?recessiondepressiondeflationstagflation
The _________________ means that a higher price level leads to lower real wealth.employment effectinterest rate effectwealth effectforeign price effect
The graph above refers to a significant increase in individual income taxes, taking them to their highest level in 50 years. Which of the following is likely to result?cyclical unemployment will decreasecyclical unemployment will decrease the economy will experience lower economic growth input prices will rise in the short run
The graph above reflects a significant increase in world oil prices. What will the impact on aggregate supply most likely lead to?an increase in economic growthan increase in input pricesa decrease in the natural unemployment rateless inflationary pressures
In an AD/AS diagram, an increase in structural unemployment will:shift AS to the right.have no effect on AS or AD.shift AS to the left.shift AD to the left.
If over a short time there is an increase in the number of people retired and a decrease in the number of people working, then productivity a. and real GDP per person rise. b. rises but real GDP per person falls. c. falls and real GDP per person rises. d. and real GDP per person fall.
Which of the following is correct? a. The maturity of a bond refers to the amount to be paid back. b. The principal of the bond refers to the person selling the bond. c. A bond buyer cannot sell a bond before it matures. d. None of the above is correct.
During recessions investment a. falls by a larger percentage than GDP. b. falls by about the same percentage as GDP. c. falls by a smaller percentage than GDP. d. falls but the percentage change is sometimes much larger and sometimes much smaller
Suppose the Congress and president decreased the maximum annual contributions limits to retirement accounts and at the same time reduced the budget deficit. What would happen to the interest rate? a. It would decrease. b. It would increase. c. It would stay the same. d. It might do any of the above.
The aggregate-demand curve shows the a. quantity of labor and other inputs that firms want to buy at each price level. b. quantity of labor and other inputs that firms want to buy at each inflation rate. c. quantity of domestically produced goods and services that households want to buy at each price level. d. quantity of domestically produced goods and services that households, firms, the government, and customers abroad want to buy at each price level.
The real interest rate is the a. interest rate corrected for inflation. b. interest rate as usually reported by banks. c. difference between the interest rate charged by banks on the loans they make and the interest rate paid by banks to their depositors. d. difference between the average dividend yield on stocks and the average interest rate on bonds.
Suppose you are deciding whether to buy a particular bond. If you buy the bond and hold it for 4 years, then at that time you will receive a payment of $10,000. If the interest rate is 6 percent, you will buy the bond if its price today is no greater than a. $8,225.06. b. $7,920.94. c. $7,672.58. d. $6,998.98.