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Macroeconomics Questions

Explore questions in the Macroeconomics category that you can ask Spark.E!

If the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP more than potential GDP, there is

Stagflation is defined as a period when real GDP _____ and the price level ______.

change in expectations, physical capital, fiscal or monetary policy

An increase in the price level reduces the purchasing power of money holdings, causing households to___ at each income level

If a stock market boom caused household wealth to rise, the result would be a ____ consumption function

Which of the following represents the components of aggregate expenditure

Which of the following is the correct formula for the simple spending multiplier

If interest rates in home loans and car loans rise, the result would be a(n) ___ consumption function

_____ represented the largest component of U.S GDP, while ____ accounted for most of the variability in real GDP for the period between 1959 and 2011

quantity of resources. quality of resources, tech

Which of the following shifts the aggregate demand curve rightward?

If real disposable income rises, the result would be a(n) _____ consumption function.

The ________________ the slope of AE, the __________________ the change in output for a given change in autonomous expenditure

Relationship between the unemployment rate and inflation rate in the short and long run

An __________1_________ in price levels _________2___________ aggregate expenditure, while a _________3_______ in price levels ____________4____________ aggregate expenditure. This is due to their being an ________5____________ relationship between price and AE.

Equilibrium occurs when _______(A)________ investment is equal to _________(B)________ investment and the unplanned change in inventories is _____(C)_______. In this case the _________(D)_______ on output is equal to the ______(E)________

How to calculate income approach to GDP

A lower U.S. price level, other things constant, leads to:

In reality the size of the multiplier is about ________

Indicate which component of GDP will be affected by each of the following transactions involving the Ford Motor Company.a. You purchase a new Ford Escape Hybrid from a Ford dealer. b. You purchase a 2013​ (preowned) Ford Escape Hybrid from a friend. c. Ford purchases door handles for the Escape from an auto parts manufacturer in Indiana. d. Ford produces​ 1,000 Escapes in a factory in Missouri and ships them to a car dealer in​ Shanghai, China. e. Ford purchases new machine tools to use in its Missouri Escape factory. f. The state of Missouri builds a new highway to help improve access to the Ford Escape plant.

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