e. long; the monthly unemployment rate
ANS: C DIF: Easy REF: 1.3 TOP: III.A.
MSC: Understanding
21. The short run is concerned with ________, while the long run is concerned with ________.
a. inflation; unemployment
b. the causes of economic fluctuations; inflation
c. the causes of economic fluctuations; the determinants of economic growth
d. the determinants of economic growth; the causes of economic fluctuations
e. the causes of economic fluctuations; the money supply
ANS: C DIF: Easy REF: 1.3 TOP: III.B.
MSC: Understanding
22. The largest decline in employment since World War II was during the
a. Great Depression.
b. Volker-Reagan recession of 1980–1982.
c. Iraq War.
d. oil crisis of the mid-1970s.
e. 2007–2009 recession.
ANS: E DIF: Easy REF: 1.1 TOP: III.B.
MSC: Remembering
23. The country with the consistently lowest inflation rate since 1980 is
a. Japan. d. Germany.
b. the United Kingdom. e. Mexico.
c. the United States.
ANS: A DIF: Easy REF: 1.1 TOP: III.B.
MSC: Remembering
24. The country with the consistently lowest unemployment rate since 1980 is
a. Italy. d. Japan.
b. the United Kingdom. e. Mexico.
c. the United States.
ANS: D DIF: Easy REF: 1.1 TOP: III.B.
MSC: Remembering
25. According to the text, per capita GDP in 2018 in the United States was about
a. $30,000. d. $1.2 million.
b. $62,000. e. $50,000.
c. $120,000.
ANS: B DIF: Easy REF: 1.3 TOP: III.B.
MSC: Remembering
TRUE/FALSE
1. Macroeconomics is the study of an individual market.
ANS: F DIF: Easy REF: 1.1 TOP: I.
MSC: Remembering
NOT: It is the study of the overall performance of an economy.
2. These four steps, in the following order, are used to study macroeconomic behavior:
(1) document the facts;
(2) develop a model;
(3) compare the predictions of the model to the original facts; and
(4) use the model to make other predictions that eventually may be tested.
ANS: T DIF: Easy REF: 1.2 TOP: II.
MSC: Applying
3. These four steps, in the following order, are used to study macroeconomic behavior:
(1) document the facts;
(2) use the model to make other predictions that may eventually be tested;
(3) compare the predictions of the model to the original facts; and
(4) develop a model.
ANS: F DIF: Easy REF: 1.2 TOP: II.