Macroeconomics Midterm

Gross Domestic Product (GDP)

A measurement of the total goods and services produced within a country. during a given year

Nominal GDP is:

GDP measured in current prices

Which of the following is a normative statement:

It is too hot to play tennis today.

the problems of aggregate inflation and unemployment are:

Major topics of macroeconomics

Inflation refers to an increase in the:

Price level

assume the demand schedule C is down-sloping. if the price of C falls from $2.00 to $1.75:

a larger quantity of C will be demanded

economics use the term "demand" to refer to:

a schedule of various combinations of market prices and amounts demanded

The basic purpose of the ceteris paribus assumption is to:

allow one to reason about the relationship between variables X and Y without the intrusion of variable Z

Macroeconomics

examines the aggregate behavior of the economy

If two variable are inversely related, then as the value of one variable:

increases, the value of the other decreases

Microeconomics

is concerned with individual economic units and specific markets

Real GDP

is the nominal GDP adjusted for changed in the price level

Economics

is the study of scarcity and choice

A positive statement is one which is:

objective and is based upon facts

The money payments made to owners of land, labor, capital, and entrepreneurial ability are:

rent, wages, interest, and profits respectively

gross domestic products best described as the:

sum of money values of all final output produced in the domestic economy within the year

Macroeconomics approaches the study of economics from the viewpoint of:

the entire economy