Intermediate Economics 341

In an economic model:

A) exogenous variables and endogenous variables are both determined B) endogenous variables and exogenous variables are both determined C) endogenous variables affect exogenous variables D) exogenous variables affect endogenous variables D) exogenous variables affect endogenous variables

Endogenous variables are:

A) fixed at the moment they enter the model B) determined within the model C) the inputs of the model D) from outside the model B) determined within the model

Prior to the COVID-19 Pandemic, the United States experienced its lowest expansion in history with the unemployment rate in February 2020 falling to:

A) 0% B) 3.5% C) 5% D) 7.5% B) 3.5%

Which of these combinations is NOT a U.S. President and an important issue of his administration?

A) President Carter; inflation B) President Reagan; budget deficits C) President H.W. Bush; budget deficits D) President Clinton; inflation D) President Clinton; inflation

Macroeconomic models:

A) assume that all wages and prices are sticky B) assume that all wages and prices are flexible C) make different assumptions to explain different aspects of the macroeconomy D) focus primarily on the optimizing behavior or households and firms C) make different assumptions to explain different aspects of the macroeconomy

An assumption of _____ is more plausible for studying the short-run behavior of the economy, while an assumption of ____ is more plausible for studying the long-run, equilibrium behavior of the economy,

A) deflation; inflation B) inflation; deflation C) flexible prices; sticky prices D) sticky prices; flexible prices D) sticky prices; flexible prices

Using a market-clearing model to analyze the labor market is ________ because wages usually change ______

A) realistic; frequently B) realistic; infrequently C) unrealistic; frequently D) unrealistic; infrequently D) unrealistic; infrequently

Important characteristic of macroeconomic models include all of of these except

A) simplifying assumptions B) functional relationships based on randomized control trials C) endogenous and exogenous variables D) implicit or explicit consistency with microeconomic foundations B) functional relationships based on randomized control trials

The inflation rate is a measure of how fast

A) the total income of the economy is growing B) unemployment in the economy is increasing C) the general level of prices in the economy is rising D) the number of jobs in the economy is expanding C) The general level of prices in the economy is rising

A typical trend during a recession is that:

A) the unemployment rate falls B) the popularity of the incumbent president rates C) incomes fall D) the inflation rate rises C) incomes fall