The topics studied in macroeconomics include:

Question 1 options:

a)	the price of a motorcycle.

b)	the wages of engineers.

c)	the general price level in the economy.

d)	how much ice cream consumers buy.

Question 2(5 points)

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Fiscal and monetary policies:

Question 2 options:

a)	are used to correct for short-term economic fluctuations.

b)	are most effective in microeconomic settings.

c)	have no role at the macroeconomic level.

d)	have been employed by governments for over 250 years.

Question 3(5 points)

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In a business cycle, a peak is immediately followed by a(n):

Question 3 options:

a)	depression.

b)	expansion.

c)

trough.

d)	recession.

Question 4(5 points)

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Which of the following measures long-run economic growth?

Question 4 options:

a)	growth of the labor force

b)	growth in the production of goods and services

c)	growth of the money supply

d)	the increase in employment over time

Question 5(5 points)

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Fiscal policy involves changes in:

Question 5 options:

a)	interest rates.

b)	government spending.

c)	the quantity of money.

d)	banking regulations.

Question 6(5 points)

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(Table: Price and Output Data)Use Table: Price and Output Data. The value of year 3's output in real dollars is:

Year	Output	Price per Unit
1	2	$2
2	3	$4
3 = base period	4	$5
4	6	$6
5	7	$9

Question 6 options:

a)

$27.

b)

$5.

c)

$36.

d)

$20.

Question 7(5 points)

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Gross domestic product is:

Question 7 options:

a)	consumer spending + government transfers + investment spending + exports - imports.

b)	disposable income + taxes + investment spending + exports + imports.

c)	consumer spending + government purchases of goods and services + financial spending + exports - imports.

d)	consumer spending + government purchases of goods and services + investment spending + exports - imports.

Question 8(5 points)

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(Table: Market Basket of School Supplies) Use Table: Market Basket of School Supplies. The table shows the prices of three common school supplies in 2018 and 2019 and the quantities of these goods sold in 2018, the base year. The school supply price index for 2019 is:

Table: Market Basket of School Supplies
Good	Prices in 2018 (Base Year)	Quantity Bought (2018)	Prices in 2019
Backpack	$40	1,000	$50
Notebook	$10	5,000	$12
Highlighter	$1	2,000	$1.25

Question 8 options:

a)

81.8.

b)

100.

c)

124.

d)

122.2.

Question 9(5 points)

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The price index in the current year is the cost of the market basket in the____year divided by the cost of the market basket in the____year times____.

Question 9 options:

a)	current; base; 1

b)	current; base; 100

c)	base; current; 100

d)	base; current; 1

Question 10(5 points)

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The purpose of indexing Social Security payments to increases in the consumer price index is to:

Question 10 options:

a)	justify continued government funding of the Bureau of Labor Statistics.

b)	maintain the purchasing power of retirees.

c)	increase corporate profits.

d)	avoid the privatization of Social Security.

Question 11(5 points)

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(Table: Unemployment and Employment Data)If marginally attached workers are included in the labor force and in the unemployment rate, the unemployment rate in this economy is _____%.

Table: Unemployment and Employment Data (in millions)
Population	170
Employed	95
Unemployed and looking for work	5
Discouraged workers	3
Retired	30

Question 11 options:

a)

3

b)

7.8

c)

8.4

d)

5

Question 12(5 points)

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Of the following firms, _____ is the best example of a company that has helped reduce frictional unemployment.

Question 12 options:

a)

Microsoft

b)

Apple

c)

Google

d)

Uber

Question 13(5 points)

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Shoe-leather costs are the costs of:

Question 13 options:

a)	raw materials used in production.

b)	living adjustments when inflation is high.

c)	the increased number of transactions when inflation is high.

d)	posting new prices to keep up with inflation.

Question 14(5 points)

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Question 14 options:

a)

Q4-Q2

b)

Q3-Q2

c)

Q4-Q1

d)

Q2-Q1

Question 15(5 points)

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A fixed nominal interest rate of _____% with _____% inflation will yield the highest real rate of return for a lender.

Question 15 options:

a)

9; 5

b)

7; 2

c)

10; 7

d)

19; 15

Question 16(5 points)

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From 2018 to 2019, nation A's real GDP increased from $100 billion to $106 billion, and its population grew from 50 million to 51 million. As a result, real GDP per capita _____ because real GDP rose _____ than the population.

Question 16 options:

a)	increased; more slowly

b)	decreased; more slowly

c)	decreased; faster

d)	increased; faster

Question 17(5 points)

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India is growing at a rate of 9% per year, and its real GDP per capita is about $3,500, while the United States is growing at a rate of 3% per year, and its real GDP per capita is about $47,000. How long will it take India to double its real GDP per capita?

Question 17 options:

a)

90 years

b)

7.8 years

c)	14.6 years

d)	10.2 years

Question 18(5 points)

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If a country has a population of 1,000 people, an area of 100 square miles, and a GDP of $5 million, then its GDP per capita is:

Question 18 options:

a)

$50,000.

b)	$5 million.

c)

$5,000.

d)

$500.

Question 19(5 points)

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The fundamental argument in theEssay on the Principle of Populationwas that improvements in technology or increases in physical capital would lead to only temporary improvements in productivity because they would always be offset by:

Question 19 options:

a)	falling birthrates.

b)	rising human capital demands.

c)	falling land values.

d)	the pressure of rising population and more workers on the supply of land.

Question 20(5 points)

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Rising high school graduation rates entail an increase in:

Question 20 options:

a)	human capital.

b)	fertility.

c)	technological progress.

d)	population.