eco part 1

Macroeconomics approaches

from the viewpoint of

• individual firms

• individual consumer

• government units

• the entire economy

Which of the following is a macroeconomic statement?

• the gross profit of all Malaysian businesses were 10 billion last year

• the price of beef declined by 1% last year

• general motor's profits increased in the year 2003

• the productivity of steel works increased by 1% in the year 2003

Economic growth would most likely be stimulated by

• higher unemployment rates

• price level stability

• sustained economic growth

• high level of environmental quality

Economic growth would most likely be stimulated by

• higher unemployment rates

• faster rates of technological progress

• increases in membership of labour unions

• consumption of more viewpoint of consumer goods

Economic growth would result from technological advances or increases in the resources available or

• reduced rates of employment outsourcing

• the federal budget deficit

• aggregate demand

• an increase in the country's terms of trade

Economic growth most unambiguously occurs when there are increases in

• potential real GDP

• aggregate demand

• ederal budget surpluses

• the population of a country

Fiscal policy attempts to achieve all of the following objectives except

• full employment

• economic growth

• price level stability

• stable money supply

Excessive monetary growth was viewed as the dominant influence in determining

• inflation

• deflation

• unemployment

• price stability

All else constant, decreases in aggregate demand tend to cause increases in

• employment

• nominal interest rate

• GDP and National Income

• unemployment

What is the meaning of equilibrium in macroeconomics?

• aggregate demand is more than aggregate supply

• aggregate demand is less than aggregate supply

• aggregate demand is equal to aggregate supply

• total value of output produced is more than total value of expenditure