1.The discipline of macroeconomics developed during the:
- Civil War.
- Great Depression.
- early phase of the Industrial Revolution.
- American Revolution.
2. Keynesian economics focuses on situations in which:
- the short-run aggregate supply curve is downward sloping.
- the short-run aggregate supply curve is vertical.
- the short-run aggregate supply curve is upward sloping.
- changes in aggregate demand affect only the price level, and leave output unchanged
3. Economists using a Keynesian model will suggest that:
- shifts in the aggregate demand curve will affect output and employment as well as aggregate prices.
- supply shocks do not affect real output.
- demand shocks do not affect real output.
- shifts in the aggregate demand curve will affect aggregate prices but will leave output and employment unchanged.
4. In Keynesian economics:
- there is no business cycle.changes in aggregate demand do not affect real output.
- the level of business confidence is not a factor in determining real output.
- the upward slope of the short-run aggregate supply curve allows expansionary fiscal policy to be effective during periods of recession.
5. Macroeconomic policies are designed to address:
- fluctuations in the level of real output.
- the problems that arise from international trade.
- the transition from an agricultural economy to an industrial economy.
- the transition from an industrial economy to a service economy.