Macroeconomics Overview

Macroeconomics is the study of:

• individual markets and players

• the overall economy and large-scale economic factors

• the behavior of small businesses

• the financial decisions of individuals

Who gathers information and key statistics for economic analysis in the U.S.?

• The Federal Reserve

• The Bureau of Economic Analysis

• The Department of Commerce

• The U.S. Census Bureau

Fill in the blank: A _______ is a short contraction in the business cycle (2 or more consecutive quarters).

• recession

• expansion

• inflation

• stagnation

Fill in the blank: A _______ is a sustained period of sharp decline.

• recession

• expansion

• stability

• growth

What are the three goals of the government when making economic decisions in a Free (mixed) Market Economy?

• Economic growth, full employment, and price stability

• Economic growth, wealth redistribution, and trade surplus

• Price stability, trade surplus, and wealth redistribution

• Full employment, wealth redistribution, and economic equality

What is one way to measure economic growth over time?

• Inflation Rate

• Gross Domestic Product

• Unemployment Rate

• Interest Rate

Fill in the blank: Gross Domestic Product is a measurement of the total goods and services produced in a _______.

• country.

• city.

• continent.

• state.

In the Output Expenditure Model, what is the formula for calculating Net Exports?

• Exports - Imports

• Imports - Exports

• Exports + Imports

• Imports + Exports

What does 'I' stand for in the Output Expenditure Model?

If Maximum Employment is a goal, what indicator do we use to measure it and check progress?

• Inflation Rate

• Unemployment Rate

• GDP Growth

• Interest Rate