Liberty University. BMAL 590 Economics Exam. Questions And Answers. A+ GRADED.An economic recession refers to:
A a cyclical decline in prices.
B a
... [Show More] period of declining unemployment.
C a period, typically two consecutive quarters, during which aggregate output declines.
Deflation refers to:
A an increase in the overall level of economic activity.
B a decrease in the overall level of economic activity.
C an increase in the price of goods and services.
D a decrease in the overall price level.
Macroeconomics is the branch of economics that deals with:
A individuals, households, and firms.
B the economy as a whole.
The school of economic thought that argues that price and wage rigidities do not provide the only
reasoning for an active macroeconomic policy framework is referred to as:
A The classical school.
B The Austrian school.
C Neo-Keynesians.
The primary driver for the emergence of macroeconomic theory as we know it today was the
failure of:
A fine tuning adopted in the 1960s.
B the economy to grow rapidly in the 1950s.
C the classical model to explain the prolonged existence of high unemployment during the great depression.
The approach that uses monetary policy to stabilize the economy is known as:
A fine tuning of demand.
According to Keynesian theory, the level of employment is determined by:
A the level of prices.
B the level of aggregate demand for goods and services.
Assume you are an author and your new book is priced at $9.95. The publisher expects to sell
5,000 copies at this price. Suppose the publisher decides to offer the book at $8.95, the publisher
can expect to sell:
A less than 5,000 copies.
B exactly 5,000 copies.
C more than 5,000 copies.
At a price of $99.95, the manufacturer of a popular herbal supplement is willing to produce
10,000 packed units of the supplement. At a price of $149.95, it is likely that the manufacturer
would be willing to produce:
A more than 10,000 packed units.
If ultrabook manufacturers are producing ultrabooks faster than people want to buy them:
A there is an excess of supply and price may be expected to decrease.
Disposable income is that part of a household's income remaining after the deduction of:
A pension contributions.
B income tax and social security payments.
C savings.
D income tax.
Total consumption divided by total income would give us:
A the marginal propensity to consume.
B the average propensity to consume.
In which one of the following situations would we be likely to observe an increase in the
equilibrium price and a decrease in the equilibrium quantity?
A If both supply and demand increase. [Show Less]