中宏Williamson-exercise chap01

Macroeconomics, 3e (Williamson)Chapter 1 I ntroduction1) I n 2005, the per-capita GDP in the United States was aboutA) $17,500.B) $27,500.C) $37,500.D) $47,500.Answer: CQuestion Status: N ew2) W hich of the following topics is NOT a primary concern of macroeconomists?A) f luctuations in the level of economic activityB) d ifferences in standards of living across countriesC) r elative wages of skilled and unskilled workersD) u nemploymentAnswer: CQuestion Status: P revious Edition3) W hich of the following questions is of most interest for MACROECONOMISTS?A) W hy is there inflation?B) W hy does the steel industry want tariffs?C) W hat is the appropriate stance of antitrust policy?D) W hy do foreigners immigrate to the United States?Answer: AQuestion Status: P revious Edition4) P rimarily, macroeconomists use microeconomic principles to studyA) b usiness cycles and trends in the stock market.B) l ong-run economic growth and antitrust policies.C) t rends in the stock market and long-term economic growth.D) l ong-run economic growth and business cycles.Answer: DQuestion Status: P revious Edition5) T he two most important American business cycle events of the twentieth century wereA) t he Great Depression and stagflation.B) W orld War II and the Great Depression.C) t he productivity slowdown and the Great Depression.D) g overnment budget deficits and World War II.Answer: BQuestion Status: P revious Edition6) O ver the course of the twentieth century, the typical AmericanA) r emained equally as rich.B) b ecame twice as rich.C) b ecame five times as richD) b ecame eight times as rich.Answer: DQuestion Status: P revious Edition7) W hich of the following assertions is false?A) T he Great Depression was a typical business cycle.B) V ery rapid growth occurred during World War II.C) R eal GDP per capita dipped about 30% during the Great Depression.D) O n average, the U.S. economy grows at a rate of 2.1%.Answer: AQuestion Status: N ew8) T he relationship between the level of growth of an economic variable, g t , and its level, y t , is best approximated asA) g t = 1t t y y −. B) g t = log y t – log y t -1.C) y t = log g t - log g t -1.D) l og g t = y t – y t -1.Answer: BQuestion Status: P revious Edition9) T he business cycle component of the log of real per-capita GNP is equal toA) l og of actual real GNP - log of trend GNP.B) l og of trend GNP ÷ log of actual real GNP.C) l og of trend GNP - log of actual real GNP.D) l og of actual real GNP ÷ log of trend GNP.Answer: AQuestion Status: P revious Edition10) F or the study of economic growth, it is most helpful to examine movements in ________; forthe study of business cycles, it is most helpful to examine movements in ________.A) t rend GNP; trend GNPB) t rend GNP; deviations from trend in GNPC) d eviations from trend in GNP; trend GNPD) d eviations from trend in GNP; deviations from trend in GNPAnswer: BQuestion Status: P revious Edition11) O ver the twentieth century, growth in per-capita GNP was highestA) i mmediately prior to the Great Depression.B) d uring World War II.C) d uring the 1960s.D) d uring the 1980s.Answer: BQuestion Status: P revious Edition12) W hen we say the U.S. economy has grown on average at 2.1%, we meanA) t he inflation rate.B) t he growth rate of nominal GDP.C) t he growth rate of per-capita nominal GDP.D) t he growth rate of per-capita real GDP.Answer: DQuestion Status: N ew13) A useful macroeconomic modelA) i s extremely realistic.B) i s simple.C) n ever generates testable hypotheses.D) p rovides a lot of intricate details.Answer: BQuestion Status: P revious Edition14) T he structure of a macroeconomic model involves all of the following exceptA) t he available technology.B) t he behavior of consumers and firms.C) t he preferences of consumers.D) t he available resources.Answer: BQuestion Status: P revious Edition15) W hat characterizes a competitive equilibrium?A) M arkets are rationed.B) G overnments stay out of the market.C) E conomic agents are price-takers.D) I t is costly to experiment with policies.Answer: CQuestion Status: N ew16) T he development most responsible for the wide-spread introduction of macroeconomicmodels built upon solid microeconomic foundations was theA) w ork of John Maynard Keynes.B) r ational expectation revolution.C) p opularization of supply-side economics.D) d evelopment of the Keynesian coordination failure model.Answer: BQuestion Status: P revious Edition17) A ccording to the Lucas critique, changes in economic policy are likely to have importanteffects onA) t he available amounts of natural resources.B) t he behavior of consumers and firms.C) t he preferences of consumers.D) n one of the aboveAnswer: BQuestion Status: P revious Edition18) C urrent macroeconomic models use microeconomic principles becauseA) t hey use the same language for all economists.B) t hey highlight the sociological aspects of production.C) t he behavior of economic agents changes with policy.D) w e live in a democratic society and everybody has a say.Answer: CQuestion Status: N ew19) W hat do macroeconomists not agree on?A) t hat microeconomic principles should be usedB) w hat generates business cyclesC) h ow to build models of growthD) t hat economic agents optimizeAnswer: BQuestion Status: N ew20) A ccording to money surprise theory, the primary causes of business cycles areA) s hocks to aggregate demand.B) m onetary factors.C) t echnology shocks.D) w aves of self-fulfilling optimism and pessimism.Answer: BQuestion Status: P revious Edition21) A ccording to real business cycle theory, the primary causes of business cycles areA) s hocks to aggregate demand.B) m onetary factors.C) t echnology shocks.D) w aves of self-fulfilling optimism and pessimism.Answer: CQuestion Status: P revious Edition22) A ccording to Keynesian coordination failure theory, the primary causes of business cyclesareA) s hocks to aggregate demand.B) m onetary factors.C) t echnology shocks.D) w aves of self-fulfilling optimism and pessimism.Answer: DQuestion Status: P revious Edition23) T he macroeconomic model that is most supportive of the role of government policy aimed atsmoothing business cycles is theA) r eal business cycle model.B) m oney surprise model.C) K eynesian coordination failure model.D) S olow growth model.Answer: CQuestion Status: P revious Edition24) T wo important theories of unemployment areA) g ame theory and search theory.B) s earch theory and the efficiency wage theory.C) t he efficiency wage theory and the quantity theory.D) t he quantity theory and game theory.Answer: BQuestion Status: P revious Edition25) W hat is produced and consumed in the economy is determined jointly byA) g overnment policies and the economy's productive capacity.B) t he economy's productive capacity and the preferences of consumers.C) t he preferences of consumers and the behavior of business managers.D) t he behavior of business managers and government policies.Answer: BQuestion Status: P revious Edition26) I mprovements in a country's standard of living are brought about in the long run byA) t echnological progress.B) g rowth in the population.C) c onstructing more machines and buildings.D) i mmigration policy.Answer: AQuestion Status: P revious Edition27) B usiness cycles areA) e ach unique, but all have a single cause.B) e ach unique and they can have many causes.C) s imilar, and they all have a single cause.D) s imilar, but they can have many causes.Answer: DQuestion Status: P revious Edition28) A tax cut isA) a n improvement for almost all agents.B) a free lunch.C) a reallocation of resources from the future to the present.D) a bad policy for almost all agents.Answer: CQuestion Status: N ew29) I n the long run, inflation is caused byA) a ggressive labor unions.B) g reedy monopolists.C) f ast growth in the money supply.D) g lobal warming.Answer: CQuestion Status: P revious Edition30) I n the long run, the quantity of moneyA) d oes not matter.B) i nfluences GDP.C) i nfluences unemployment.D) i nfluences the business cycle.Answer: AQuestion Status: N ew31) A trade-off between aggregate output and inflationA) i s theoretically possible, but has never been observed in practice.B) m ay exist in the short run, but not in the long run.C) m ay exist in the long run, but not in the short run.D) e xists in both the short run and the long run.Answer: BQuestion Status: P revious Edition32) W hich is not a cause for business cycles considered by macroeconomists?A) s hocks to money supplyB) e lectionsC) s hocks to technological abilityD) v ariations in optimismAnswer: BQuestion Status: N ew33) A productivity slowdown was observed from theA) e arly 1950s to the late 1960s.B) e arly 1960s to the early 1970s.C) l ate 1960s to the early 1980s.D) m id-1980s to the late 1990s.Answer: CQuestion Status: P revious Edition34) T wo plausible hypotheses to explain the productivity slowdown areA) m easurement problems and adjustments to new technologies.B) l arge government budget deficits and large balance of trade deficits.C) g lobalization of capital markets and reductions in tariffs.D) a djustments to new technologies and failures in the educational system.Answer: AQuestion Status: P revious Edition35) T he major contributor to the long-run improvement of a country's standard of living isA) l ow inflation.B) g rowth in government.C) p opulation growth.D) t echnological progress.Answer: DQuestion Status: N ew36) U nemployment is good from a social point of view becauseA) i t keeps wages in check.B) i t allows for better matches between workers and firms.C) i t provides free time.D) i t keeps the least efficient workers out.Answer: BQuestion Status: N ew37) T he U.S. government budget wasA) c ontinuously in surplus from 1959 to the late 1990s.B) i n surplus for most of the period from 1959-1970, but was in deficit for most of theperiod from 1970 to the late 1990s.C) i n deficit for most of the period from 1959-1970, but was in surplus for most of theperiod from 1970 to the late 1990s.D) c ontinuously in deficit from 1959 to the late 1990s.Answer: BQuestion Status: P revious Edition38) T he idea that government budget deficits do not matter under certain circumstances isA) c alled the Friedman-Lucas theory.B) c alled the Ricardian equivalence theorem.C) a ttributed to Edward Prescott and Finn Kydland.D) p reposterous.Answer: BQuestion Status: P revious Edition39) I n the second half of the twentieth century, the U.S. inflation rate was at its highest in theperiod fromA) 1960 to the early 1970s.B) t he mid-1970s to the early 1980s.C) t he mid-1980s to the early 1990s.D) 1990-2000.Answer: BQuestion Status: P revious Edition40) T he average labor productivity is defined asA) p er-capital real GDP divided by employment.B) n ominal GDP divided by employment.C) p er-capita nominal GDP divided by employment.D) r eal GDP divided by employment.Answer: DQuestion Status: N ew41) A government surplus isA) w hen it spends more than its income.B) w hen it owes more than what it is owed.C) w hen its income is higher than its spending.D) w hen it is owed more than what it owes.Answer: CQuestion Status: N ew42) G overnment debt is different from individual debt becauseA) t he government can always tax to reimburse it.B) t he government cannot declare bankruptcy.C) t he government does not need to pay interest.D) t he government can decide the interest rate.Answer: AQuestion Status: N ew43) T he real interest rate isA) a lways equal to the pure rate of time preference.B) e qual to the rate of inflation minus the nominal rate of interest.C) e qual to the nominal rate of interest minus the rate of inflation.D) l ess important for decision making than the nominal rate of interest.Answer: CQuestion Status: P revious Edition44) T he real interest rate isA) a lways positive.B) a lways negative.C) l ower than the nominal interest rate.D) z ero.Answer: CQuestion Status: N ew45) W hen there is high inflationA) t he nominal interest rate is approximately equal to the real interest rate.B) t he real interest rate is always greater than the nominal interest rate.C) t he nominal interest rate is always greater than the real interest rate.D) t he real interest rate is always negative.Answer: CQuestion Status: P revious Edition46) R eal interest rates were negative during most of theA) 1960s.B) 1970s.C) 1980s.D) 1990s.Answer: BQuestion Status: P revious Edition47) A sharp increase in energy prices most plausibly accounts for theA) G reat Depression.B) K orean War inflation.C) r ecession in 1973-1975.D) r ecessions of the early 1980s.Answer: CQuestion Status: P revious Edition48) W hich period was not a recession in the United States?A) 1974-1975B) 1990-1991C) 1984-1985D) 2001Answer: CQuestion Status: N ew49) W hich was the deepest recession in recent decades in the Unites States?A) 1978-1979B) 1981-1982C) 1990-1991D) 2001Answer: BQuestion Status: N ew50) T he most likely explanation of the recession of 1981-1982 wasA) a n increase in energy prices.B) a collapse in investment spending.C) t hat it was an unfortunate byproduct of a decrease in inflation.D) a dramatic decrease in stock prices.Answer: CQuestion Status: P revious Edition51) I nflation is defined asA) 1t t p p −. B) 1t t p p − + 1. C) 1t t p p − - 1. D) 1t tp p +. Answer: CQuestion Status: N ew52) W hen a country has a current account balance deficit, the countryA) i s always borrowing from abroad.B) i s always lending abroad.C) a lways has a large government budget surplus.D) a lways has a large government budget deficit.Answer: AQuestion Status: P revious Edition53) W hen a country has a current account balance surplus, the countryA) i s always borrowing from abroad.B) i s always lending abroad.C) a lways has a large government budget surplus.D) a lways has a large government budget deficit.Answer: BQuestion Status: P revious Edition54) W hich of the following observations is NOT true about the unemployment rate in theUnited States?A) T he unemployment rate in the period after 1970 is higher than the unemployment ratein the period before 1970.B) T he unemployment rate fluctuates significantly.C) S ince 1970, the unemployment rate rose until the mid-1980s and has declinedthereafter.D) S ince 1970, the unemployment rate fell until the mid-1980s and has increasedthereafter.Answer: DQuestion Status: P revious Edition55) T he fact that the unemployment rate is higher after 1970 is primarily explained byA) c hanges in the level of economic activity.B) c hanges in the structure of the population.C) c hanges in government intervention.D) s tructural shifts.Answer: BQuestion Status: P revious Edition56) Y ear-to-year fluctuations in the unemployment rate are primarily explained byA) c hanges in the level of economic activity.B) c hanges in the structure of the population.C) c hanges in government intervention.D) s tructural shifts.Answer: AQuestion Status: P revious Edition。