Macroeconomics > QUESTIONS & ANSWERS > Macro Unit 1 Questions and Answers 100% Pass (All)

Macro Unit 1 Questions and Answers 100% Pass

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Macro Unit 1 Questions and Answers 100% Pass Macroeconomics would include the study of ✔✔national infrastructures Which of the following statements describes macroeconomics? ✔✔It looks at the overall ups and downs of the economy. Microeconomics involves decisions made by ✔✔firms and households Studying macroeconomics helps us learn about the value and limitations of __________, which occurs across nations, typically involving foreign exchange transactions. ✔✔global trade Macroeconomists look at __________ to study the overall health of the economy. ✔✔economic indicators Which of the following topics can macroeconomics help a person understand? ✔✔ In the Circular Flow model, what do firms purchase? ✔✔Labor from households In the Circular Flow model, governments ✔✔produce some final goods and services In the Circular Flow diagram, households ✔✔purchase final goods and services GDP per capita is often used to measure the ✔✔standard of living GDP is best described as ✔✔the value of economic activity that takes place in a country in a given year Which statement below is NOT true about GDP? ✔✔It includes value from leisure. In 2009, the yearly tuition at a state university is $20,000. In 2017, the yearly tuition at the same state university is $31,000.Using the price of tuition for reference, the inflation rate of the U.S. dollar increased by a factor of __________ in eight years. ✔✔1.55 In 2010, the average cost of a house in France is 126,000 euros. In 2018, the average cost is 154,000 euros.Using the price of the average house for reference, the inflation rate of the Euro increased by a factor of __________ in eight years. ✔✔1.22 In January 2008, a bag of rice cost five million Zimbabwean dollars. Several months later, the same bag of rice cost 250 million Zimbabwean dollars.Using the price of rice for reference, the inflation rate of the Zimbabwean dollar increased by a factor of __________ in just a few months. ✔✔50 When GDP growth is at its maximum, given current resources, the business cycle is said to be in which phase? ✔✔Peak A _________ is a decline in economic activity that lasts more than a few months and is visible in _________. ✔✔recession; real GDP The business cycle period in which the economy shows growth is the ✔✔expansion If a central banking authority lowers interest rates in order to encourage more borrowing, which of the following combinations describes this type of policy? ✔✔Expansionary monetary Which of the following policies is implemented when the economy is growing too quickly? ✔✔A tax increase by the government

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