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Overview of Macroeconomics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which of the following is NOT a way for a country to be successful at international trade?

Question 2 2. When a nation with low labor costs and few government restrictions on business enacts open trade agreements, which of these will likely happen?

Question 3 3. When the United States and Canada can import and export products across its border with no restrictions, it is called _____.

Question 4 4. Which one of the following is not a function of a banking system?

Question 5 5. Which of the following is NOT a type of bank or banking system?

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Question 6 6. Which one of the following is not a function of investment banks or systems?

Question 7 7. What's the difference between a debt and a deficit?

Question 8 8. What school of thought supports a fiscal policy of strong government spending during times of economic troubles?

Question 9 9. What are the two primary tools of fiscal policy?

Question 10 10. The goods markets are the life force of the economy and encompasses all of the following except

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Question 11 11. Why is it likely that you will be able to easily trade financial bonds from the money market for cash?

Question 12 12. One of the biggest capital markets is the stock market which is associated with all of the following except

Question 13 13. Aggregate demand refers to which of the following?

Question 14 14. Why is economic equilibrium found at the point where the aggregate demand curve, the long-term supply curve, and the short-term supply curve cross?

Question 15 15. In Keynes' aggregate supply-aggregate demand model, what is long-term supply?

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Question 16 16. Which economic growth theory assumed diminishing marginal product of capital and labor?

Question 17 17. Which theory assumed an increase in population will bring the GDP back down to its equilibrium state?

Question 18 18. What new resource does the New Growth Theory include to explain how capital and labor do not experience diminishing marginal returns?

Question 19 19. Which of the following will most likely occur as a result of an increase in labor productivity?

Question 20 20. Which of the following is NOT a determinant of the productivity of a nation?

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Question 21 21. Economists call the equipment and structures used to produce goods and services:

Question 22 22. What happens to economic output as measured by GDP during a recession?

Question 23 23. Economists recognize that the economy doesn't grow smoothly, but in regular patterns. Which of these terms best describes this?

Question 24 24. According to this chart, what was the unemployment rate during the peak of the business cycle?

Question 25 25. What is the Fed doing when it engages in open-market operations?

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Question 26 26. If the Fed changes the amount of money a bank is required to retain rather than lend out, what policy tool is it using?

Question 27 27. If the Fed lowers the interest rate it charges banks, what monetary tool is it using?

Question 28 28. Which of the following statements regarding an exchange rate is not true?

Question 29 29. All of the following are types of exchange rates that countries can use, except:

Question 30 30. If the exchange rate between the U.S. dollar and Mexican Peso is 13 Pesos to 1 U.S. dollar, how many dollars would a gallon of ice cream costing 52 pesos be?

Overview of Macroeconomics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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