macro ch 4 hw

In Econland exports equal 15 percent of total output, while imports equal 20 percent of total output. Econland has a:

trade deficit

Inflation was a major problem in the United States during the:

1970s

The unemployment rate in the United States at the peak of the Great Depression was _____ percent.

25

A particularly severe recession is called a(n):

depression

A cost of aggregation is that:

details about individual households and firms are lost.

In Econland population and average labor productivity are constant. If a larger proportion of the population becomes employed workers, then total output will _____ and output per person will ______.

increase; increase

The standard of living in an economy is best measured by:

output per person

The country of Northland produced $1,000 billion of output in one year. The population of Northland was 50 million, of whom 30 million were employed. What was average labor productivity in Northland?

$33,333

Which of the following would be considered an example of monetary policy?

Provision of additional cash to the banking system.

A nation's central bank:

controls the nation's monetary policy.

Major macroeconomic questions include all of the following EXCEPT: a. Are free trade agreements beneficial? b.Can inflation be reduced without generating additional unemployment? c.What causes slowdowns in productivity growth? d.How do monopoly firms set prices and determine quantities to produce?

d. How do monopoly firms set prices and determine quantities to produce?

Fiscal policy refers to:

decisions to determine the government's budget.

Among economists today, the most widely accepted cause of the Great Depression is:

poor economic policymaking

"U.S. exports will increase as a result of joined CAFTA," is an example of a ______ statement, while "The U.S. should join CAFTA," is an example of a _____ statement.

positive; normative

"Privatization of government owned industries is likely to increase unemployment in the short run" is a __________ statement about _________ policy.

positive; structural