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1
Which of the following macroeconomic policies are structural?
A)A reduction in income taxes.
B)Provision of additional cash to the banking system.
C)A request by a developing country to the International Monetary Fund for a loan.
D)Decision by the government to cut spending.
E)Decision by the central bank to raise interest rates.
2
Which of the following would be considered an example of monetary policy?
A)A broad government initiative to reduce the country's reliance on agriculture and promote high-technology industries.
B)A reduction in income tax rates.
C)Provision of additional cash to the banking system.
D)An attempt to reduce the government budget deficit by reducing spending.
E)A decision by a developing country to reduce government control of the economy and to become more market-oriented.
3
Which of the following would be studied by macroeconomists?
A)The effect of government subsidies on wheat prices.
B)The impact of the minimum wage on families below the poverty level.
C)Inflation in developing countries.
D)The effect of rent controls on housing prices in Toronto.
E)The anticompetitive effects of banking mergers.
4
In Econland population and average labour productivity are constant. If a larger proportion of the population become employed workers, then total output will _____ and output per person will ______.
A)increase; increase
B)decrease; decrease
C)remain constant; remain constant
D)decrease; remain constant
E)remain constant; decrease
5
In Econland population increased from 2 million to 4 million, the number of employed workers increased from 1 million to 2 million, but average labour productivity decreased from $25,000 per worker per year to $20,000 per worker per year. Total output in Econland _____ and the average standard of living _____.
A)decreased; decreased
B)decreased; increased
C)increased; remained constant
D)increased; increased
E)increased; decreased
6
A decrease in the federal income tax is an example of ______ policy.
A)aggregation
B)fiscal
C)monetary
D)structural
E)productivity
7
A decision by a government to sell businesses that currently are operated by the government to private investors is an example of ________ policy.
A)aggregation
B)fiscal
C)monetary
D)structural
E)productivity
8
To aggregate 300 tonnes of steel, 5,000 bushels of wheat, and 1 million barrels of crude oil, economists add together the _____ of the three products
A)units
B)dollar value
C)physical volume
D)weight
E)number of tonnes, bushels, and barrels
9
Aggregation allows economists to ______ at the cost of ________.
A)study monetary policy issues; neglecting fiscal policy issues
B)make positive statements; ignoring normative analysis
C)make normative statements; ignoring positive analysis
D)see the details; obscuring the big picture
E)see the big picture; obscuring the details
10
In Econland exports equal 25% of total output, while imports equal 20% of total output. Econland has:
A)a budget surplus.
B)a budget deficit.
C)a trade surplus.
D)a trade deficit.
E)balanced trade.







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