A. expansion
B. boom
C. recession
D. shortage
Ans: C
AACSB: Reflective thinking
Blooms: Comprehension
Difficulty: Medium
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
24. The fraction of people who would like to be employed, but can't find work is called the:
A. inflation rate
B. average labour productivity rate
C. unemployment rate
D. participation rate
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
25. Unemployment typically _______ during a recession.
A. only exists
B. rises
C. falls
D. remains constant
Ans: B
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
26. The unemployment rate is the:
A. number of workers unemployed
B. number of workers in the labour force
C. percentage of the population that is out of work
D. percentage of the labour force that is out of work
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
27. The rate at which prices in general are increasing is called the:
A. inflation rate
B. standard of living
C. unemployment rate
D. trade balance
Ans: A
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
28. A trade imbalance occurs when:
A. exports from and imports to a country suddenly decline
B. the quantity of imports equals the quantity of exports, but is large relative to total output
C. a country does not import or export any goods or services
D. the quantity of a country's exports differs significantly from the quantity of imports
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.1 What are the broad issues that macroeconomists study and the types of data they use and interpret?
Topic: The major macroeconomic issues
29. A nation's central bank:
A. determines the nation's fiscal policy
B. controls the nation's monetary policy
C. is the bank that holds deposits for the most customers in the nation
D. is the bank that has the most neutral lending policy
Ans: B
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.2 Can you identify the three major types of macroeconomic policy and discuss the difference between positive and normative analyses of macroeconomic policy?
Topic: Macroeconomic policy
30. When government revenue is less than government spending, the nation has a:
A. government budget surplus
B. trade surplus
C. government budget deficit
D. trade deficit
Ans: C
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.2 Can you identify the three major types of macroeconomic policy and discuss the difference between positive and normative analyses of macroeconomic policy?
Topic: Macroeconomic policy
31. A government decision to privatise a sector of the economy formerly operated by the government is an example of _____ policy.
A. aggregation
B. monetary
C. fiscal
D. structural
Ans: D
AACSB: Reflective thinking
Blooms: Knowledge
Difficulty: Easy
LO: 1.2 Can you identify the three major types of macroeconomic policy and discuss the difference between positive and normative analyses of macroeconomic policy?
Topic: Macroeconomic policy
32. Decisions to reduce the money supply are made by _____ and are an example of _____ policy.
A. the Prime Minister; monetary
B. the Reserve Bank; monetary
C. Senate; monetary
D. the Reserve Bank; fiscal
Ans: B
AACSB: Reflective thinking
Blooms: Comprehension
Difficulty: Medium
LO: 1.2 Can you identify the three major types of macroeconomic policy and discuss the difference between positive and normative analyses of macroeconomic policy?
Topic: Macroeconomic policy
33. A decrease in income tax is an example of ______ policy.