宏观经济学（英文版） chapter 1.docx

Macroeconomics (Hubbard et aL)Chapter 1 The Long and Short of Macroeconomics 1.1 What Macroeconomics Is About1) In the short run, macroeconomic analysis focuses on, while in the long run, the focus is onA) fiscal policy; monetary policyB) short-run economic growth; population demographicsC) unemployment; inflationD) the business cycle; long-run economic growthAnswer: DDiff: 1 Page Ref: 2Topic: Macroeconomics in the Short Run and in the Long RunObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring2)refers to alternating periods of economic expansion and economic recession in an economy.A) Fiscal policyB) Labor productivityC) The business cycleD) Positive economic analysisAnswer: CDiff: 1 Page Ref: 2Topic: Macroeconomics in the Short Run and in the Long RunObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring3) The process by which productivity raises the average standard of living is referred to asA) long-run economic growth.B) labor productivity.C) population growth analysis.D) the economic prosperity hypothesis.Answer: ADiff: 1 Page Ref: 2Topic: Macroeconomics in the Short Run and in the Long RunObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring29) As a percentage of GDP, U.S. imports have been and U.S. imports have beensince 1950.A) growing; decliningB) declining; growingC) growing; growingD) declining; decliningAnswer: CDiff: 1 Page Ref: 9Topic: International Factors Have Become Increasingly Important in Explaining Macroeconomic EventsObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring30) The openness of the U.S. economy hasA) increased over time.B) decreased over time.C) remained fairly consistent over time.D) decreased over the past 30 years, following a 50 year increase.Answer: ADiff: 1 Page Ref: 9Topic: International Factors Have Become Increasingly Important in Explaining Macroeconomic EventsObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring31) Economists measure the "openness" of an economy in terms ofA) its immigration policies.B) how often it holds free elections.C) the percentage of foreign-born workers in its labor force.D) how much it trades with other economies.Answer: DDiff: 1 Page Ref: 9Topic: International Factors Have Become Increasingly Important in Explaining Macroeconomic EventsObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring32) Over the past 20 years, foreign financial investment in the United States hasA) increased significantly.B) decreased significantly.C) remained fairly consistent.D) become negative.Answer: ADiff: 1 Page Ref: 10Topic: International Factors Have Become Increasingly Important in Explaining Macroeconomic EventsObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring33) Over the past 20 years, purchases of foreign financial assets by U.S. investors hasA) increased significantly.B) decreased significantly.C) remained fairly consistent.D) become negative.Answer: ADiff: 1 Page Ref: 10Topic: International Factors Have Become Increasingly Important in Explaining Macroeconomic EventsObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring34) What is the key macroeconomic issue of the short run and what is the key macroeconomic issue of the long run?Answer: In the short run, macroeconomics focuses on the business cycle, and in the long run, macroeconomics focuses on long-run economic growth.Diff: 1 Page Ref: 2Topic: Macroeconomics in the Short Run and in the Long RunObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring35) What is long-run economic growth and how is it measured?Answer: Long-run economic growth is the process by which productivity raises the average standard of living. It is measured by labor productivity, which is the quantity of goods and services that can be produced by one worker or by one hour of work.Diff: 2 Page Ref: 2Topic: Macroeconomics in the Short Run and in the Long RunObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring36) Explain how the standard of living of the average person in an economy can increase?Answer: The only way for the standard of living of an average person in an economy can increase is if production increases faster than population growth. This is possible only through increases in labor productivity.Diff: 2 Page Ref: 2Topic: Macroeconomics in the Short Run and in the Long RunObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring37) Over the past 10 years, the average growth rate in real GDP has been 2 to 3 times greater in India than in the United States. What does this indicate about the difference in the level of income in India and the United States over the past 10 years.Answer: Since the average growth rate in real GDP is greater in India than in the United States, the difference in the level of income in these countries over the past 10 years has been getting smaller. Diff: 2 Page Ref: 5Topic: Some Countries Have Not Experienced Significant Long-Run Growth Objective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring38) Explain what is happening to spending on Social Security and Medicare as the U.S. population continues to age. Why might this spending change pose problems for the U.S. economy?Answer: Spending on programs such as Social Security and Medicare has increased from less than 3% of GDP in 1960 to more than 10 percent of GDP today, and is expected to grow to nearly 20% by 2050. Since most of the money for these programs comes from taxes paid by people currently working, as the population ages, there are fewer workers paying taxes relative to the number of people receiving these payments. This results in a funding crisis that can be solved only by either reducing these government payments, reducing expenditure on other programs, or raising the taxes paid by current workers.Diff: 2 Page Ref: 5Topic: Aging Populations Pose a Challenge to Governments Around the World Objective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring39) How are the labor force and the unemployment rate calculated?Answer: The labor force is the sum of employed and unemployed workers in the economy. The unemployment rate is the percentage of the labor force that is unemployed, so is calculated as the number of unemployed people divided by the labor force.Diff: 2 Page Ref: 6Topic: Unemployment in the United StatesObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring40) What does the inflation rate measure, and what is deflation?Answer: The inflation rate measures the percentage increase in the price level from one year to the next. Deflation is a sustained decrease in the price level.Diff: 2 Page Ref: 7Topic: Inflation Rates Fluctuate Over Time and Across CountriesObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring41) What is the Great Moderation? When did it begin and end?Answer: The Great Moderation refers to the period from 1984-2007, when industrial economies experienced increased economic stability in terms of real GDP.Diff: 1 Page Ref: 9Topic: Economic Policy Can Help Stabilize the EconomyObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring42) What is monetary policy?Answer: Monetary policy refers to the actions that the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives.Diff: 1 Page Ref: 9Topic: Economic Policy Can Help Stabilize the EconomyObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring43) What is fiscal policy?Answer: Fiscal policy refers to changes in government taxes and purchases that are intended to achieve macroeconomic policy objectives.Diff: 1 Page Ref: 9Topic: Economic Policy Can Help Stabilize the EconomyObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring44) How do economists measure the "openness" of an economy? Explain if the U.S. economy has become more or less "open” over the past 60 years?Answer: Economists measure the nopenness'* of an economy in terms of how much it trades with other economies. Over the past 60 years, the U.S. economy has become more open, with both imports and exports steadily increasing as a percentage of GDP.Diff: 2 Page Ref: 9Topic: International Factors Have Become Increasingly Important in Explaining MacroeconomicEventsObjective: LOI: Become familiar with the focus of macroeconomics.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring1.2 How Economists Think About Macroeconomics1) Economic models do all of the following exceptA) simplify some aspect of economic life.B) answer economic questions.C) make economic ideas explicit and concrete for use by decision makers.D) portray reality in all its minute details.Answer: DDiff: 1 Page Ref: 12Topic: Macroeconomic ModelsObjective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring2) All of the following are part of an economic model exceptA) data.B) opinions.C) assumptions.D) hypotheses.Answer: BDiff: 1 Page Ref: 12Topic: Macroeconomic ModelsObjective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking SkillsE) Recurring3) In building an economic model, variables that are taken as given are referred to as variables.A)exogenousB)endogenousC) concreteD) presumptiveAnswer: ADiff: 1 Page Ref: 14Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic Models Objective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring4) In building an economic model, variables that will be explained by the model are referred to as variables.A)exogenousB)endogenousC) fluctuatingD) demonstrativeAnswer: BDiff: 1 Page Ref: 14Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic Models Objective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring5) If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labor force, the exogenous variable(s) would beA) income tax rates.B) the size of the labor force.C) both income tax rates and the size of the labor force.D) neither income tax rates nor the size of the labor force.Answer: ADiff: 2 Page Ref: 14Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic Models Objective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring6) If you were building a macroeconomic model that explores the effect of an increase in income tax rates on the size of the labor force, the endogenous variable(s) would beA) income tax rates.B) the size of the labor force.C) both income tax rates and the size of the labor force.D) neither income tax rates nor the size of the labor force.Answer: BDiff: 2 Page Ref: 14Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic ModelsObjective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring7) If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for Social Security and Medicare, the exogenous variable(s) would be theA) aging population.B) needed expenditure on Social Security.C) needed expenditure on Medicare.D) needed expenditure on both Social Security and Medicare.Answer: ADiff: 2 Page Ref: 14Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic ModelsObjective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring8) If you were building a macroeconomic model that explores the effect of the aging population on the needed expenditure for Social Security and Medicare, the endogenous variable(s) would be the A) aging population.8) needed expenditure on Social Security.9) needed expenditure on Medicare.10) needed expenditure on both Social Security and Medicare.Answer: DDiff: 2 Page Ref: 14Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic Models Objective: LO2: Explain how economists approach macroeconomic questions.Special Feature: noneAACSB: Reflective Thinking Skills*: Recurring9) During the last three months of 2010, consumer spending grew at an annualized rate of 4.4% and the increase in spending was accompanied by income growth. If you were building a macroeconomic model that explores the effect of the growth in income on the increase in consumer spending, the growth in income would be an variable and the increase in consumer spending would be anvariable.A) endogenous; endogenousB) endogenous; exogenousC) exogenous; exogenousD) exogenous; endogenousAnswer: DDiff: 2 Page Ref: 18-19Topic: Assumptions, Endogenous Variables, and Exogenous Variables in Economic Models Objective: LO2: Explain how economists approach macroeconomic questions.Special Feature: An Inside Look at Policy: Will Consumer Spending Nudge Employers to Hire? AACSB: Reflective Thinking SkillsArticle SummaryAccording to the Office for National Statistics? consumer p