Macroeconomics is the branch of economics that deals with____
the economy as a whole
the functioning of individual industries and the behaviour of individual decision-making units-business firms and households.
imperfectly competitive markets.
only the long run adjustments to equilibrium in the economy.
Economists use the term ‘Regulatory capture’ to mean a situation where the private sector firms being regulated
bribe the regulator
are allowed to regulate themselves
persuade the government to change the regulatory regime
persuade the regulator to act in the firms’ interests
Macroeconomic theory which emphasized the theories of Keynes and de-emphasized the Classical theory developed as the result of the failure of
economic theory to explain the simultaneous increases in inflation and unemployment during the 1970s, fine tuning during the 1960s.
the Classical model to explain the prolonged existence of high unemployment during the Great Depression.
the economy to grow at a rapid rate during the 1950s.
None of the above.
The percentage of the labour force that is unemployed is the
unemployment rate.
labour force rate.
unemployment population ratio.
employment rate.
The diagram that shows the income received and payments made by each sector of the economy is the
aggregate demand-aggregate supply diagram.
income-price diagram.
circular flow diagram.
income-expenditures diagram.
An index of prices of all domestically produced goods in the economy is the
Consumer Price Index.
GDP deflator.
Producer Price Index.
Wholesale Price Index.
The index used most often to measure inflation is the
producer price index.
GDP deflator.
wholesale price index.
consumer price index.
The length of a business cycle would be measured from
peak to trough
trough to peak
peak to peak.
the slump to the expansion.
It has become conventional to classify an economic downturn as a
two consecutive quarters.
three consecutive quarters.
a year.
two years.
Cyclical unemployment is the
portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries.
unemployment that occurs during recessions and depressions.
portion of unemployment that is due to the normal working of the labour market.
unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
Classifying discouraged workers as unemployed would
increase the unemployment rate.
decrease the unemployment rate.
not change the unemployment rate.
have an indeterminate impact on the unemployment rate.
An individual who is not working and who has given up looking for work is classified as
unemployed.
a discouraged worker.
unemployable.
hard core unemployed.
According to Keynes, the level of employment is determined by
the level of aggregate income.
interest rates.
price and wages.
the level of aggregate demand for goods and services.
The practice of using fiscal and monetary policy to stablilise the economy is known as
Monetarism
supply side economics
fine tuning
sound money
According to Classical models, the level of employment is determined primarily by
the level of aggregate demand for goods and services.
prices and wages.
government taxation.
government spending.