Modern economists are increasingly using microeconomic analysis in macroeconomics because
A. macroeconomic subjects such as inflation affect all individuals.
B. microeconomic theory is more scientific.
C. aggregate outcomes stem from decisions made by individuals, business firms and government.
D. macroeconomics is older and more outdated.
Answer: C
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Whenever a bank's actual reserves exceed its desired reserves, the bank
A) can lend out additional funds. B) needs to call in loans. C) will go out of business. D) must increase the amount of its required reserves by obtaining more cash.
The best example of a capital good would be ___.
A. the generator in a power plant that makes electricity B. a new lawn mower owned by Mr. Goffe C. aluminum that is transformed into an airplane D. funds that a company borrows from a bank
In the U.S. economy, sole proprietorships account for over half the firms, but corporations account for over half of total sales revenue.
Answer the following statement true (T) or false (F)
The presence of discouraged workers may cause:
A. GDP to be too large. B. the employment rate to be understated. C. the unemployment rate to be overstated. D. the unemployment rate to be understated.