Intermediate Macroeconomics
Midterm Exam
Course Introduction
Intermediate Macroeconomics expands upon foundational macroeconomic concepts by examining the broader economic forces that influence national and global economies. The course delves into models of income determination, economic growth, and business cycles, exploring how factors such as consumption, investment, government policy, inflation, unemployment, and international trade interact. Students will analyze the effects of fiscal and monetary policy on output and prices, and apply theoretical frameworks to real-world economic issues. Through problem-solving, case studies, and data analysis, learners will develop a deeper understanding of contemporary macroeconomic challenges and policies.
Recommended Textbook
Macroeconomics 10th Edition by Stephen Slavin
Available Study Resources on Quizplus
19 Chapters
5438 Verified Questions
5438 Flashcards
Source URL: https://quizplus.com/study-set/3248 Page 2
Chapter 1: A Brief Economic History of the United States
Available Study Resources on Quizplus for this Chatper
258 Verified Questions
258 Flashcards
Source URL: https://quizplus.com/quiz/64528
Sample Questions
Q1) Which statement is false?
A)The spreading use of electricity during the 1920s helped create rapid economic expansion in that decade.
B)The stock market rose very rapidly in the late 1920s.
C)Between 1921 and 1929 national output rose by 50 percent.
D)None of the statements are false.
Answer: D
Q2) The symbiotic relationship between mass production and mass consumption was best personified by
A)John D.Rockefeller.
B)Andrew Carnegie.
C)Henry Ford.
D)John Deere.
Answer: C
Q3) The U.S.population is over _________ million.
Answer: 300
Q4) The major cause of the recession in 2001 was a decline in _____________ spending.
Answer: investment
Page 3
To view all questions and flashcards with answers, click on the resource link above.
Chapter 2: Resource Utilization
Available Study Resources on Quizplus for this Chatper
265 Verified Questions
265 Flashcards
Source URL: https://quizplus.com/quiz/64527
Sample Questions
Q1) The economy could reach point W if it
A)reduced the unemployment rate.
B)achieved economic growth.
C)decreased its quantity of land,labor and capital.
D)shifted resources from butter production into the manufacturing guns.
Answer: B
Q2) The opportunity cost of a movement from point N to J would
A)be the lost production of some capital goods.
B)be the lost production of some consumer goods.
C)be slower economic growth in the future.
D)not involve any sacrifice of either capital or consumer goods.
Answer: B
Q3) The reason that opportunity costs arise is that
A)people have unlimited wants.
B)there are no alternative decisions that could be made.
C)an economy relies on money to facilitate exchange of goods and services.
D)resources are scarce.
Answer: D
Q4) What is the opportunity cost of moving from point B to point C?
Answer: 2 milk shakes
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: The Mixed Economy
Available Study Resources on Quizplus for this Chatper
262 Verified Questions
262 Flashcards
Source URL: https://quizplus.com/quiz/64526
Sample Questions
Q1) In the mid-1980s,in which communist country did the credo change from "From each according to his ability,to each according to his needs" to "More pay for more work,less pay for less work"?
A)The Soviet Union
B)Vietnam
C)Cuba
D)China
Answer: D
Q2) How many households receive their incomes mainly from the business sector?
A)300 million
B)117 million
C)50 million
D)39 million
Answer: B
Q3) In a pure capitalist economy,"what to produce" is determined by
A)a central planning board.
B)the price mechanism.
C)the issuing of government coupons used along with money to purchase goods.
D)None of these choices are true.
Answer: B
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Supply and Demand
Available Study Resources on Quizplus for this Chatper
255 Verified Questions
255 Flashcards
Source URL: https://quizplus.com/quiz/64525
Sample Questions
Q1) Price always tends toward its ______________ level.
Q2) As price rises,quantity demanded _____.
Q3) When market price is below equilibrium price
A)a shortage is generated.
B)market price will rise.
C)quantity demanded is greater than quantity supplied.
D)all of the choices.
Q4) Draw in a new supply curve,S1,on figure,showing an increase in supply.What happens to price and quantity?
Q5) If the price system is allowed to function without interference and a surplus occurs,quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.
A)rise,rise
B)fall,fall
C)rise,fall
D)fall,rise
Q6) As price declines,quantity supplied
A)rises.
B)falls.
C)remains the same.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: The Household Consumption Sector
Available Study Resources on Quizplus for this Chatper
312 Verified Questions
312 Flashcards
Source URL: https://quizplus.com/quiz/64524
Sample Questions
Q1) If disposable income were to fall from 6,000 to 5,000,
A)induced consumption would fall.
B)induced consumption would stay the same.
C)induced consumption would rise.
D)there is not enough information to determine whether induced consumption would rise,fall or remain the same.
Q2) When there is dissaving,APC is _________________.
Q3) The term "conspicuous consumption" was coined by ___________________.
Q4) Over the last 20 years,our APC has
A)never been above 0.9.
B)sometimes been above 0.9.
C)usually been above 0.9.
D)always been above 0.9.
Q5) At the point where C line crosses the 45-degree line,saving is
A)positive.
B)negative.
C)zero.
D)there is not enough information to know this.
Q6) How much is the APS?
To view all questions and flashcards with answers, click on the resource link above. Page 7
Q7) How much is autonomous consumption when disposable income is $800 billion?
Chapter 6: The Business Investment Sector
Available Study Resources on Quizplus for this Chatper
295 Verified Questions
295 Flashcards
Source URL: https://quizplus.com/quiz/64523
Sample Questions
Q1) All of the following are true except
A)gross investment minus depreciation equals net investment.
B)Karl Marx said that capital is produced by the capitalist.
C)inventory investment is less stable than investment in plant and equipment.
D)capital can be acquired by borrowing,working more or consuming less.
Q2) When disposable income is $1,000,the APS is
A).05
B).10
C).25
D).50
Q3) Which is the most accurate statement?
A)Islamic law strictly limited the number of legal heirs to property.
B)Christian canon law strictly standardized the law of inheritance.
C)Barriers to keeping estates intact over generations was easier in the Middle East than in Western Europe.
D)Inheritance laws in the Middle East versus Western Europe to a great degree explain the differences in economic development of the two regions.
Q4) The expected profit rate is found by dividing _________ by ________.
Q5) When disposable income is $1 trillion,how much is C?
To view all questions and flashcards with answers, click on the resource link above. Page 8
Chapter 7: The Government Sector
Available Study Resources on Quizplus for this Chatper
301 Verified Questions
301 Flashcards
Source URL: https://quizplus.com/quiz/64522
Sample Questions
Q1) The excise tax on gasoline is
A)a direct tax.
B)an indirect tax.
C)a direct tax and an indirect tax.
D)neither a direct tax nor an indirect tax.
Q2) Which statement is false?
A)A poor person who smokes pays a higher percentage of her income in cigarette excise tax than a rich person.
B)The cigarette excise tax is a regressive tax.
C)The cigarette excise tax is a direct tax.
D)None is false.
Q3) The marginal tax rate is calculated by dividing
A)taxes paid by taxable income.
B)taxable income by taxes paid.
C)additional taxes paid by additional taxable income.
D)additional taxable income by additional taxes paiD.
Q4) To find your family's taxable income,you need to subtract your _____ and your
Q5) Mr.Forbes pays $35,000,000 in federal income tax.How much is his marginal tax rate?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: The Export-Import Sector
Available Study Resources on Quizplus for this Chatper
177 Verified Questions
177 Flashcards
Source URL: https://quizplus.com/quiz/64521
Sample Questions
Q1) Statement I: Canada is our most important trading partner.
Statement II: In 1999,11 EU countries formed the European Monetary Union.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.
Q2) Recently we have run a _________ balance of trade on goods and a ___________ balance of trade on services.
Q3) The most important economic concept to consider when deciding whether to produce a product domestically or import the product is
A)law of supply
B)law of demand
C)opportunity cost
D)law of increasing cost
Q4) Prominent among the protesters at the WTO meeting in Seattle in late 1999 were these three groups: (1)_________________; (2)__________________; (3)___________________.
Q5) The NAFTA treaty includes side agreements on _______________,_____________,and ________________.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Gross Domestic Product
Available Study Resources on Quizplus for this Chatper
336 Verified Questions
336 Flashcards
Source URL: https://quizplus.com/quiz/64520
Sample Questions
Q1) Suppose that our GDP fell from one year to the next.
A)The GDP deflator definitely fell.
B)Real GDP definitely fell.
C)Both real GDP and the GDP deflator definitely fell.
D)None of the choices are correct.
Q2) Wages are used to calculate
A)GDP by the income approach.
B)GDP by the expenditures approach.
C)Net exports.
D)Net subsidies to government enterprises.
E)None of the choices are correct.
Q3) If real GDP rises by 2.0 percent and the GDP deflator rises by 1.6 percent,find the percentage change in GDP.
Q4) Using the expenditures approach,GDP consists of four things: (1)____________; (2)_______; (3)_______;and (4)___.
Q5) Which of the following is a final good or service?
A)Wood pulp purchased by a paper company
B)A box of brownies purchased by your instructor
C)A computer chip purchased by Banana Computers
D)Potatoes purchased by a potato chip company
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: Economic Fluctuations, unemployment, and Inflation
Available Study Resources on Quizplus for this Chatper
394 Verified Questions
394 Flashcards
Source URL: https://quizplus.com/quiz/64519
Sample Questions
Q1) When there is full employment,there is no _____ unemployment.
A)frictional
B)structural
C)cyclical
Q2) Statement I: The CPI and the GDP deflator are similar concepts,but the GDP deflator is a broader measure.
Statement II: The CPI and the GDP deflator are inversely related,so when the CPI rises,the GDP deflator declines.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.
Q3) Discouraged workers are officially
A)unemployed.
B)employed.
C)not in the labor force.
D)in the labor force.
Q4) The _____ marks the low point of a business cycle.
Page 12
Q5) A decrease in the rate of inflation is called ____.
Q6) The low point of the business cycle is the ______;the high point is the ____.
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 11: Classical and Keynesian Economics
Available Study Resources on Quizplus for this Chatper
241 Verified Questions
241 Flashcards
Source URL: https://quizplus.com/quiz/64518
Sample Questions
Q1) As the maximum output level (real GDP)is approached,the aggregate supply curve
A)becomes flatter.
B)is downward sloping.
C)becomes steeper.
D)remains unchangeD.
Q2) Keynes thought the Great Depression had been caused by a collapse in ____.
Q3) Which of the following is not an aspect of Keynesian economics?
A)Wages and prices tend to be inflexible downward.
B)Supply does not necessarily generate its own demand.
C)Saving depends directly upon the level of income.
D)Unemployment is a temporary phenomenon.
Q4) According to classical macroeconomic theory,
A)aggregate supply automatically adjusts to shifts in aggregate demand.
B)demand creates its own supply.
C)flexible prices,wages,and interest rates assure full-employment equilibrium.
D)desired investment typically exceeds desired saving.
Q5) The _____ curve shows how production in the economy is related to the price level.
Q6) The vertical part of the aggregate supply curve is the _____ range.
Q7) Keynesians believe that the two basic cures for a recession are _____ and ____.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 12: Fiscal Policy and the National Debt
Available Study Resources on Quizplus for this Chatper
377 Verified Questions
377 Flashcards
Source URL: https://quizplus.com/quiz/64517
Sample Questions
Q1) When equilibrium GDP is too large,we have
A)a recessionary gap.
B)a depression.
C)an inflationary gap.
D)escalating inflation.
Q2) An increase in the rate of economic growth is likely to
A)increase the federal budget deficit.
B)decrease the federal budget deficit.
C)have no effect on the federal budget deficit.
D)increase the federal budget deficit only if inflation decreases.
Q3) Which of the following best describes what is meant by automatic stabilization policies?
A)Policies that automatically help boost the economy when heading into an economic upturn
B)Policies that require the direct action of the movement of the economy
C)Policies that tend to dampen increases in aggregate demand during expansion and stimulate aggregate demand during recession without the requirement of political voting
D)Any policy that acts on fiscal matters to improve economic performance
Q4) When G is equal to tax revenue we have a ________ budget.
Page 15
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Money and Banking
Available Study Resources on Quizplus for this Chatper
278 Verified Questions
278 Flashcards
Source URL: https://quizplus.com/quiz/64516
Sample Questions
Q1) If a goldsmith starts out the day with 100 gold coins in his safe and 100 receipts in circulation and he wrote out 100 receipts that day as loans,how much would his reserve ratio be at the end of the day?
Q2) Statement I: Branch banking is prohibited in most states.
Statement II: All banks are chartered in the states in which they have their headquarters.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.
Q3) People tend to hold more money as the rate of inflation ___ and as the level of income ___.
A)rises;rises
B)falls;falls
C)rises;falls
D)falls;rises
Q4) The _____ demand for money is most sensitive to interest rate changes.
A)transactions
B)precautionary
C)speculative
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 14: The Federal Reserve and Monetary Policy
Available Study Resources on Quizplus for this Chatper
365 Verified Questions
365 Flashcards
Source URL: https://quizplus.com/quiz/64515
Sample Questions
Q1) Sally writes a $10,000 check to Harry who deposits it in the same bank.
A)Both deposits and reserves of depository institutions increase.
B)Both deposits and reserves of depository institutions remain unchanged.
C)Reserves at depository institutions increase,but deposits remain the same.
D)Both deposits and reserves at depository institutions decrease.
E)Reserves at depository institutions decrease,but deposits remain the samE.
Q2) Reserves must be deposited in the Federal Reserve Banks by
A)only commercial banks which are members of the Federal Reserve System.
B)all depository institutions,that is,all commercial banks and thrift institutions.
C)state chartered commercial banks only.
D)federally chartered commercial banks only.
Q3) Statement I: The president basically makes monetary policy.
Statement II: The Board of Governors of the Fed serves at the president's pleasure and can be summarily dismissed.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.
Q4) The three goals of monetary policy are (1)________; (2)________;and (3)_______.
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: A Century of Economic Theory
Available Study Resources on Quizplus for this Chatper
308 Verified Questions
308 Flashcards
Source URL: https://quizplus.com/quiz/64514
Sample Questions
Q1) According to the rational expectations theory the rate of inflation largely depends on
A)business expectations of interest rate levels.
B)business expectations about international trade.
C)what people expect to happen to prices.
D)the unemployment rate.
Q2) According to Keynes,the main institutional barriers to downward wage and price flexibility were (1)_________________ and (2)___________________.
Q3) The monetarists believed that
A)the way to fight recessions was by means of fiscal policy.
B)the quantity theory of money has a great deal of validity.
C)recessions generally come about because the Federal Reserve is not allowing the money supply to grow fast enough.
D)the money supply should be allowed to grow at least 8 percent a year.
Q4) If P rose by 20% and Q stayed the same,what would happen to MV?
Q5) According to the crude quantity theory of money,if M were increased by 20%,what would happen to V,P,and Q?
Q6) The __________ believe that the supply of money should be increased at a constant rate each year.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Economic Growth and Productivity
Available Study Resources on Quizplus for this Chatper
231 Verified Questions
231 Flashcards
Source URL: https://quizplus.com/quiz/64513
Sample Questions
Q1) Our rate of productivity growth in the 1970s and 1980s was _____ the rate of productivity growth in the 1960s.
A)twice
B)one and a half times
C)equal to D)one third
Q2) In the year 2005,the rate of personal savings in the United States was below _____ percent.
A)15
B)10
C)5
D)1
Q3) Around the year _____,growth in the world output per head accelerated sharply.
A)1350
B)1500
C)1650
D)1800
Q4) Prior to the industrial revolution,except for a few rich families,everyone was ________.
Q5) About _____ of the world's population live in LDCs.
Page 19
To view all questions and flashcards with answers, click on the resource link above.
Chapter 30: Income Distribution and Poverty
Available Study Resources on Quizplus for this Chatper
285 Verified Questions
285 Flashcards
Source URL: https://quizplus.com/quiz/64512
Sample Questions
Q1) The poverty rate _______ between 1993 and 2000 and _____ between 2001 and 2004.
A)fell;fell
B)rose;rose
C)fell;rose
D)rose;fell
Q2) During the period between 1960 and 1968 the poverty rate _____.
Q3) The typical welfare family consists of a ____________ and ____________ children.
Q4) Perhaps the biggest problem that is faced by those administering workfare programs is
A)that most of the people on welfare are not highly employable.
B)too much money is allocated for education and training.
C)that welfare recipients have no incentive to work.
D)the states are not required to follow any guidelines in administering the program.
Q5) Which statement is false?
A)The poverty rate was lower in 2009 than it was in 2000.
B)The poverty rate for children under 18 is higher than the poverty rate for people over 65.
C)The poverty rate today is higher than it was in 2006.
D)The poverty rate for Hispanics is three times that of whites.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 31: International Trade
Available Study Resources on Quizplus for this Chatper
268 Verified Questions
268 Flashcards
Source URL: https://quizplus.com/quiz/64511
Sample Questions
Q1) Farm subsidies
A)enable industrial nations to export much of their agricultural output at artificially low prices.
B)in the world's richest nations amount to over $300 billion.
C)make it more difficult for less developed nations to purchase capital equipment from U.S.manufacturers such as Caterpillar.
D)All of the choices are true.
Q2) A tariff can best be described as
A)an excise tax on an imported good.
B)a government payment to domestic producers to enable them to sell competitively in world markets.
C)an excise tax on an exported good.
D)a law that sets a limit upon the amount of a good that can be importeD.
Q3) The cost of an extra unit of coal in Australia in terms of oil given up is A)100.
B)20.
C)5.
D)1/5.
Q4) What is Italy's opportunity cost of producing 3 art books?
To view all questions and flashcards with answers, click on the resource link above. Page 21
Chapter 32: International Finance
Available Study Resources on Quizplus for this Chatper
230 Verified Questions
230 Flashcards
Source URL: https://quizplus.com/quiz/64510
Sample Questions
Q1) The U.S.was the world's leading net creditor nation until A)1971.
B)1973.
C)1982.
D)1990.
Q2) If 1 U.S.dollar exchanges for 0.69 British pounds,how much would it cost in U.S.dollars and cents to purchase a British chess set priced at 20 pounds?
Q3) Statement I: We are currently on the gold standard.
Statement II: The gold standard is a self-correcting mechanism.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.
Q4) We began running consecutive annual trade deficits
A)before we began running current account deficits.
B)at the same time we began running current account deficits.
C)after we began running current account deficits.
Q5) If 1 U.S.dollar exchanges for 0.65 euro,how much would it cost in U.S.dollars and cents to purchase a bottle of Italian wine priced at 40 euro?
To view all questions and flashcards with answers, click on the resource link above. Page 22