Principles of Macroeconomics: Self-Study Quiz and Exercises

MACROECONOMICS NAME_____________
FINAL EXAM

Chapter 5

1) Which of the following is NOT a topic studied in Macroeconomics?
A) gross domestic product
B) the unemployment rate
C) the price of IBM computers
D) the inflation rate
ANSWER:____________

2) In a business cycle, a peak represents the end of ________ and a trough represents the end of
________.
A) an expansion; a recession
B) a depression; an expansion
C) a trough; a peak
D) a recession; an expansion
ANSWER:____________

3) The unemployment rate equals
A) labor force/population.
B) unemployed/employed.
C) (employed - unemployed)/labor force.
D) unemployed/labor force.
ANSWER:____________

4) Government policies regarding taxes and expenditures are called
A) fiscal policy.
B) income policies.
C) supply-side policy.
D) monetary policy.
ANSWER:____________

5) The diagram that shows the income received and payments made by each sector of the economy is the
A) aggregate demand-aggregate supply diagram.
B) circular flow diagram.
C) income flow diagram.
D) income-production diagram.
ANSWER:____________

6) In which basic market would DVDs be traded?
A) the goods and services market
B) the money market
C) the labor market
D) the factor market
ANSWER:____________

Chapter 6

7) Which of the following is a good or service counted in GDP?
A) tires Ford buys to put on a car
B) a used tire you buy for your personal car
C) a new tire you buy for your personal car
D) used tires bought by a used car dealer to put on a car on his lot
ANSWER:____________

8) The GDP includes
A) the value of all intermediate goods and services.
B) the value of all final goods and services.
C) the value of both intermediate and final goods and services.
D) the value of all transactions.
ANSWER:____________

9) If the GDP deflator is greater than 100, then
A) nominal GDP is greater than real GDP.
B) nominal