Which of the following BEST describes macroeconomics?
A) It is not a social science because its predictions cannot be tested.
B) It analyzes the aggregate effects on the national economy of the choices made by individuals, firms, and governments.
C) It examines how the choices that individuals affect governments.
D) It studies the choices that individuals and businesses make when coping with scarcity.
E) Proving causation is never a problem for macroeconomics.
B
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Suppose the economy is initially experiencing a recessionary ga
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an inflationary ga
The "equality of opportunity" idea of fairness claims
A) a society should make the poorest as well off as possible. B) the results and the rules should both be fair. C) it's not fair if the rules aren't fair. D) private property can be transferred under government order. E) only a first-come, first-served system of allocating resources is fair.
If the price level rises, what will happen to the demand for reserves?
a. It will shift outward. b. It will shift inward. c. It will remain unchanged. d. It depends on what happens to interest rates.
A change in aggregate supply would be caused by a change in:
A. the price level. B. aggregate demand. C. the quantity of real output supplied. D. input prices.