Post Lecture #1

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 changed d) it has no direct relation to the endogenous variables e) all of the above

a) it is often a policy variable

An increase in interest rates might be an example of a _______ policy for the purpose of ________: a) monetary; reducing inflation b) monetary; lowering unemployment c) monetary; increasing the quantity of money d) fiscal; reducing inflation e) fiscal; lowering unemployment

a) monetary; reducing inflation

Nonactivists propose doing nothing in the face of economic hardship because: a) "markets self-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 above e) none of the above

d) all of the above

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

d) strictly explained inside the model

An increase in government spending might be an example of a _______ policy for the purpose of ________: a) monetary; lowering unemployment b) monetary; reducing inflation c) monetary; increasing saving d) fiscal; reducing inflation e) fiscal; lowering unemployment

e) fiscal; lowering unemployment

Macroeconomic models particularly focus on the following three economic data series 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

e) none of the above

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, household, or market

e) the overall economic activity and prices; an individual firm, household, or market