MACROECONOMICS LESSON 1_REVIEW

Macro economics studies long run economic growth and short-run economic fluctuations

• True

• False

Real GDP totals the dollar value for of all goods and services within border of a given country using their current prices during the year they were produced

• True

• False

Unemployment is a waste of resources because the economy gives up the goods and services that unemployed workers could have produced if they had been working.

• True

• False

An example of a macroeconomic policy question would be “Can goverments promote long-run economic growth”?

• True

• False

A large decline in household income will increase Demand.

• True

• False

the opportunity cost of a choice is the value of the best alternative forgone.

• True

• Flase

A decrease in the demand for tomatoes increases the equilibrium price and decreases the equilibrium quantity.

• True

• False

Which of the following is NOT a topic studied in Macroeconomics

• gross domestic product

• the unemployment rate

• the price of IBM computers

• the inflation rate

An increase in the overall price level is known as

• recession.

• stagflation

• deflation

• inflation

The unemployment rate equals

• labor force/population

• unemployed/employed.

• (employed- unemployed)/labor force.

• (labor force - employed) / labor force.