C1 : SET 4 - INTRODUCTION TO MACROECONOMICS

With what kinds of topics does macroeconomics concern itself?

• Economic activities of individual firms, households, and other organizations.

• Forces of supply and demand in a particular market.

• Consumer behavior and firms output decisions.

• Aggregate economic phenomena like the rate of unemployment and inflation

Which one of the following is the best explanation of macroeconomics?

• The study of economics

• The study of decisions that businesses and individuals make in the marketplace

• The study of the global economy

• The study of economic phenomena that affects an entire economy

Macroeconomics is associated with the fluctuation of the general price level in the country.

• TRUE

• FALSE

Macroeconomics explains the behavior of individual household and business firms.

• TRUE

• FALSE

Price level stability is one of the macroeconomic goals.

• TRUE

• FALSE

The purpose of monetary policy is to maintain the overall price level and to achieve higher economic growth.

• TRUE

• FALSE

The government implements contractionary monetary policy when recession occurs.

• TRUE

• FALSE

Monetary policy is changes in the money supply or credit conditions designed to achieve macroeconomic goals.

• TRUE

• FALSE

The tools of fiscal policy are government expenditure is and taxation.

• TRUE

• FALSE

Aggregate demand is the total aggregate output and price level of economy in a given period.

• TRUE

• FALSE