Macroeconomics differentiate between the real economy and the

Question 1

Macroeconomics differentiate between the real economy and the…

a) …monetary economy.

b) …virtual economy.

c) …normative economy.

d) …underground economy.

Question 2

During the First World War, prices…

a) …fluctuated up and down with high magnitudes but no trend

b) …showed a procyclical trend

c) …showed a countercyclical trend

d) …were as likely to fall as they were to rise (trendless)

Question 3

Define aggregate demand

a) … a concept used to show the total demand for goods and services in an economy

b) …economic fluctuations were the cumulative result of mistakes made by businesses and households in an uncertain world.

c) …government demand could be used to smooth fluctuations in aggregate output and income.

d) …supply creates its own demand through the circular flow of economic activity.

Question 4

In order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing…

a) …unemployment rates.

b) …inflation rates.

c) …interest rates.

d) …economic growth rates.

Question 5

In order to influence spending on goods and services in the short-run, monetary policy is directed at directly influencing…

a) …unemployment rates.

b) …inflation rates.

c) …interest rates.

d) …economic growth rates.

Question 6

Economics that passes judgment, or provides advice on policy actions is called

a) …positive economics

b) …negative economics

c) …normative economics

d) …descriptive economics