Macroeconomics

You buy share in ABC company in the Internet and the brokerage charges you $50.

• This will increase the investment component of GDP and therefore overall GDP

• This has no effect on GDP

• This will increase GDP by $50

• This will increase GDP by the cost of the shares minus $50

• This will increase GDP by the cost of the share plus $50

An increase in the Consumer Price Index is commonly referred to as

• economic growth

• inflation

• unemployment

• discouraged workers

• deflation

Which type of unemployment would increase if workers lost their jobs because of a recession

• cyclical

• frictional

• structural

• seasonal

• search

An economy is in a short run equilibrium at a level of output that is less than full employment output. If there were no fiscal or monetary policy interventions, which of the following changes in output and price level would occur in the long run?

• increase/decrease

• increase/increase

• decrease/decrease

• decrease/increase

• no change/no change

Which of the following would cause the short run aggregate supply curve to shift to the right

• An increase in the wage rate

• An increase in the interest rate

• an increase in the natural rate of unemployment

• a decrease in the capital stock

• a decrease in the expected price level

In a circular flow diagram, households send _______ to firms in return for _____

• resources/spending

• spending/resources

• resources/ wages and profits

• goods and services/ wages

• goods and services/ spending

Assume the reserve requirement is five percent. If the Fed sells $10 million worth of government securities in the open market operation, then the money supply can potentially

• increase by $200 million

• decrease by $200 million

• increase by $50 million

• decrease by $50 million

• increase by $150 million

Suppose real GDP increases. We can conclude without double that

• prices are higher

• employment is higher

• production is higher

• prices and output are greater

• unemployment is lower

GDP measures a country's level of

(I) production

(II) stability

(III) income

• I only

• II only

• III only

• I and II

• I and III

Stagflation is the result of

• a leftward shift in the aggregate supply curve

• a leftward shift in the aggregate demand curve

• a leftward shift in both the aggregate supply and aggregate demand curve

• a rightward shift in the aggregate supply curve

• a rightward shift in the aggregate demand curve