5. Among the prices that macroeconomist study are:D

a. the price of coffee. c. the interest rate. b. the price of tea. d. all of the above.

6. Among the prices that macroeconomists study are:D

a. the wage rate. c. the exchange rate. b. the interest rate. d. all of the above.

7. Monetary policy involves:abcd

a. the government’s expenditure. b. taxation.

c. determining the quantity of money. d. the fiscal deficit.

8. The unemployment rate is:

a. the fraction of the population with no job. b. the fraction of those seeking work with no job. c. the rate of growth of those with no job. d. the rate of growth of those seeking work.

9. Fiscal policy involves:

a. determining exchange rates. b. government expenditures.

c. interest rates. d. all of the above.

10. The rate of growth of GDP for period t is:

a.

b.

c.

d.

11. Variations in real GDP are called:

a. inflation. c. economic fluctuations. b. deflation. d. all of the above.

12. When GDP is expanding toward a high point it is called a[n]:

a. depression. c. recession. b. boom. d. inflation.

13. When real GDP falls toward a low point or trough it is called a[n]:

a. boom. c. inflation. b. recession. d. expansion.

14. During recessions the unemployment rate:

a. declines. b. increases.

c. is stable.

d. is unmeasureable.

15. The unemployment rate in the US was highest in the:

a. 1990s c. 1980s b. 1930s d. 1950s

16. The inflation rate for year t is: