Econ303

Which question would MOST likely be studied by macroeconomists?

Will more government spending reduce the unemployment rate?

Since the early 1980s, inflation in the United States has been relatively _____ and relatively _____.

low; stable

Real GDP is often plotted on a logarithmic scale. On such a scale, equal distances on the axis represent equal _____ changes.

percentage

A higher economic standard of living is the result of the growth in:

real GDP per person.

Suppose that the pizza demand function is D(P, Y) = 60−10P+2Y and the pizza supply function is S(P, Pm) = 20P−20Pm where P is the price of pizza, Y is aggregate income, and Pm is the price of materials. If Y = 70 and Pm = 5, then the equilibrium price is:

10

In which decade did the United States experience the most severe inflation?

1970s

_____ is the study of how firms and individuals make decisions.

Microeconomics

A severe form of a recession is called:

a depression.

In 2008-2009, real GDP declined in the United States. During this period, the nation was experiencing:

a recession.

The changes in the price level of _____ are studied in macroeconomics.

all countries

The field of macroeconomics does NOT study the:

effects of the tariff on imported steel on the prices of automobiles in the United States.

The recession experienced in the United States in 2008-2009 occurred after a(n) _____ crisis.

financial

Between 2000 and 2015, the number of cell phones in use in the United States increased dramatically, while the price of using a cell phone fell. This can be explained by a(n):

increased supply of cell phones.

When _____, the _____ rate tends to decrease.

inflation increases; unemployment

Magazine prices are an example of _____ prices.

sticky

Most macroeconomists believe that price flexibility is a suitable assumption for studying the behavior of the economy in:

the long run only.

In a supply and demand model, which is considered the endogenous variable?

the quantity of the product supplied or demanded

Most macroeconomists believe that price stickiness is a suitable assumption for studying the behavior of the economy in:

the short run only.

The fraction of the labor force that is out of work is called the:

unemployment rate.