Introduction to Macroeconomics
Multiple Choice Questions
1.Macroeconomics is the study of ________ while microeconomics studies ________:
a.firm behavior; market behavior
b.large biological systems; political implications of nanotechnology
c.an individual firm; the overall economic performance of a nation
d.the overall economic performance of the world; the economy of a single country
e.the overall economic activity and prices; an individual firm, houhold, or market
2.An endogenous variable is typically:
a.Taken as a given.
b.Strictly explained by data.
c.Strictly explained outside the model.
d.Strictly explained inside the model.
e.Strictly explained by graphical analysis.
3.Which statement is true of an exogenous variable in an economic model?
a.It is often a policy variable.
b.It is explained inside the model.
c.Its value within the model cannot be change
d.
d.It has no direct relation to the endogenous variables.
e.All of the above.
4.Macroeconomic models particularly focus on the following three economic data ries.小狗作文200字
a.Inflation, unemployment, and business cycles.
b.Bankruptcies, the unemployment rate, and depressions.
c.Nominal GDP, the employment rate, and budget deficits.
d.Endogenous variables, exogenous variables, and parameters.
e.None of the above.
Introduction to Macroeconomics
5.An increa in government spending might be an example of a ________ policy for the purpo of :
d.fiscal; reducing inflation
e.fiscal; lowering unemployment
6.An increa in interest rates might be an example of a ________ policy for the purpo of:
d.fiscal; reducing inflation
寄语
蒸包子的做法e.fiscal; lowering unemployment
7.Nonactivists propo doing nothing in the face of economic hardship becau:
a."Markets lf-correct pretty rapidly anyway".
b.Activist policies can kick in at the wrong time and be counterproductive.
c.In the face of high unemployment, activist policies would likely lead to surges in inflation.
d.All of the abov
e.
e.None of the above.
Introduction to Macroeconomics
Discussion Questions
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1.Explain the difference between monetary policy and fiscal policy. What are some of the reasons that the
macroeconomic policies are ud?
Fiscal policy refers to a government’s changing its taxes or spending or both.
Monetary policy is a central bank’s control of interest rates and the amount of money in an economy.
仙人掌的外形特点The policies are ud for such purpos as influencing an economy’s saving rate, reducing or expanding the size of a government’s budget deficit, influencing the inflation rate and unemployment
历史与社会rate in an economy, or limiting business cycle fluctuations and stabilizing economic activity.
2.What is stabilization policy? What two important debates occur among macroeconomists regarding its u and
who are the parties to the debates?
Stabilization policy is the u of fiscal and monetary policies to stabilize economic activity by reducing business cycle fluctuations. One debate concerns how active stabilization policy should be. It pits nonactivists, macroeconomists who believe that the economy has a lf-correcting mechanism that works rapidly to reduce unemployment without the need for stabilization policy, against activists who think this lf-correcting mechanism is too slow and therefore call for the active u of fiscal and monetary policies to reduce unemployment when it is unacceptably high. A cond debate aris between macroeconomists who advocate the u of policy rules to specify in advance precily how policymakers must react to changes in unemployment or inflation and tho who would allow policymakers greater latitude to u their discretionary judgment to formulate the policy respon they believe is most appropriate in a given situation.
3.For each of the following statements, explain which would make a reasonable hypothesis to test. U
the
concepts of normative and positive statements in your answers.
a.Increas in the duration of unemployment benefits lead to higher rates of unemployment.
b.Immigrations is bad for society.
c.Increas in the labor force cau output to ri.
d.Welfare payments make workers lazy.
e.Higher tax rates increa work effort.
Statements (a), (c), and (e) are positive statements that could be tested directly. Statements (b) and (d) are normative statements that involve value judgments and thus cannot be tested in an objective way.
Introduction to Macroeconomics
4.If you were studying the following relationships, which variable would be exogenous and which wo
uld be
endogenous?
a.The effect of investment growth on the growth rate of GDP.
Investment, exogenous; GDP, endogenous.
b.The relationship between the amount of sunshine and plant growth.
Sunshine, exogenous; growth, endogenous.
c.The relationship between hours of studying and grade point average.
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Studying, exogenous; GPA, endogenous.
