Macro answers
Problem Set 1
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following topics is NOT a primary concern of macroeconomists?
A) relative wages of skilled and unskilled workers
B) unemployment
C) differences in standards of living across countries
D) fluctuations in the level of economic activity
1)
2) Primarily, macroeconomists use microeconomic principles to study
A) business cycles and trends in the stock market.
B) long-run economic growth and business cycles.
C) trends in the stock market and long-term economic growth.
D) long-run economic growth and antitrust policies.
2)
3) The relationship between the level of growth of an economic variable, g t, and its level, y t, is best
3)
approximated as yt A) g t =
.
y t-1
B) g t = log yt - log yt-1 .
D) y t = log gt - log gt-1 .
C) log gt = y t - y t-1 .
4) When we say the U.S. economy has grown on average at 2.1%, we mean
A) the growth rate of per‐capita real GDP.
B) the growth rate of nominal GDP.
C) the growth rate of per‐capita nominal GDP.
D) the inflation rate.
4)
5) Government debt is different from individual debt because
A) the government does not need to pay interest.
B) the government cannot declare bankruptcy.
C) the government can always tax to reimburse it.
D) the government can decide the interest rate.
5)
6) Approaches to measuring GDP include all of the following except the
A) income approach.
B) cost approach.
C) expenditure approach.
D) product approach.
6)
7) We know the following about a tie manufacturer: tie sales $1,300, cotton purchases $750, wages
$400, interest on business loans $100, and profits $50. What is the contribution to GDP of this producer using the income approach?
A) $450
B) $400
C) $500
D) $550
7)
8) If real GDP grows faster than nominal GDP, it is a sign that
A) inflation is negative.
B) there is galloping inflation.
C)
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1) Which of the following topics is NOT a primary concern of macroeconomists?
A) relative wages of skilled and unskilled workers
B) unemployment
C) differences in standards of living across countries
D) fluctuations in the level of economic activity
1)
2) Primarily, macroeconomists use microeconomic principles to study
A) business cycles and trends in the stock market.
B) long-run economic growth and business cycles.
C) trends in the stock market and long-term economic growth.
D) long-run economic growth and antitrust policies.
2)
3) The relationship between the level of growth of an economic variable, g t, and its level, y t, is best
3)
approximated as yt A) g t =
.
y t-1
B) g t = log yt - log yt-1 .
D) y t = log gt - log gt-1 .
C) log gt = y t - y t-1 .
4) When we say the U.S. economy has grown on average at 2.1%, we mean
A) the growth rate of per‐capita real GDP.
B) the growth rate of nominal GDP.
C) the growth rate of per‐capita nominal GDP.
D) the inflation rate.
4)
5) Government debt is different from individual debt because
A) the government does not need to pay interest.
B) the government cannot declare bankruptcy.
C) the government can always tax to reimburse it.
D) the government can decide the interest rate.
5)
6) Approaches to measuring GDP include all of the following except the
A) income approach.
B) cost approach.
C) expenditure approach.
D) product approach.
6)
7) We know the following about a tie manufacturer: tie sales $1,300, cotton purchases $750, wages
$400, interest on business loans $100, and profits $50. What is the contribution to GDP of this producer using the income approach?
A) $450
B) $400
C) $500
D) $550
7)
8) If real GDP grows faster than nominal GDP, it is a sign that
A) inflation is negative.
B) there is galloping inflation.
C)