Aggregation is important in macroeconomics because
a. it is a basic tool of reasoning
b. we need a model with as much information as possible
c. it allows us to comprehend the entire economy in all its detail
d. it allows us to keep different markets separate in our minds
e. we need to consider the entire economy at once with a model as simple as possible
E
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Protectionism tends to be concentrated in two sectors
A) agriculture and clothing. B) high-tech and national security sensitive industries. C) capital and skill intensive industries. D) industries concentrated in the South and in the Midwest of the country. E) financial services and manufacturing based in the Midwest.
Suppose an appreciation of the French franc causes U.S. prices of French wine imports to rise sharply. On the other hand, Californian wine becomes relatively inexpensive to French consumers. Other things equal, this will result in:
a. an increase in U.S. aggregate expenditures and an increase in the aggregate quantity of U.S. goods and services demanded. b. a decrease in U.S. aggregate expenditures and a decrease in the aggregate quantity of U.S. goods and services demanded. c. an increase in U.S. aggregate expenditures and a decrease in the aggregate quantity of U.S. goods and services demanded. d. no change in either U.S. aggregate expenditures or the aggregate quantity of U.S. goods and services demanded. e. a decrease in U.S. aggregate expenditures and an increase in the aggregate quantity of U.S. goods and services demanded.
Which of the following could lead to an increase in worker productivity?
a. A decrease in the physical capital stock b. An increase in the number of workers c. A war that destroys an enormous amount of plant and equipment d. An increase in the physical capital stock e. A decrease in the human capital stock
Over the past twenty years the Fed's policy experience
a. has been good and improving b. is an indicator that economic policy is confused c. shows a focus on full employment d. reveals a lack of concern about unemployment e. has been generally poor and deteriorating