In macroeconomics,
a. we study one market at a time
b. we try to understand how the entire economy behaves
c. we focus on large, important products and ignore the rest
d. we study one nation's economy only
e. we aggregate all national economies into a world economy
B
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Place point X on the graph to indicate full employment, point Y to indicate economic growth and point Z to indicate a bad depression.
In the above figure, the line represented by the "4" is the
A) average fixed cost. B) marginal revenue. C) average total cost. D) marginal cost.
In the Solow growth model, an increase in the savings rate
A) raises steady state per capita output. B) raises the growth rate in aggregate output. C) must reduce per capita consumption. D) must reduce the standard of living.
If business fluctuations are from demand-side forces,
a. monetary and fiscal policy will move inversely. b. interest rates and budget deficits will move inversely. c. unemployment and inflation will move inversely. d. unemployment and budget deficits will move inversely.