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In: Business and Management

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Chapter 23
Measuring a Nation's Income

TRUE/FALSE

1. In years of economic contraction, firms throughout the economy increase their production of goods and services, employment rises, and jobs are easy to find.
ANS: F DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Economic expansion MSC: Definitional

2. Macroeconomic statistics include GDP, the inflation rate, the unemployment rate, retail sales, and the trade deficit.
ANS: T DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Macroeconomics MSC: Definitional

3. Macroeconomic statistics tell us about a particular household, firm, or market.
ANS: F DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Macroeconomics MSC: Definitional

4. Macroeconomics is the study of the economy as a whole.
ANS: T DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Macroeconomics MSC: Definitional

5. The goal of macroeconomics is to explain the economic changes that affect many households, firms, and markets simultaneously.
ANS: T DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Macroeconomics MSC: Definitional

6. Microeconomics and macroeconomics are closely linked.
ANS: T DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Microeconomics | Macroeconomics MSC: Definitional

7. The basic tools of supply and demand are as central to macroeconomic analysis as they are to microeconomic analysis.
ANS: T DIF: 1 REF: 23-0
NAT: Analytic LOC: The study of economics and definitions of economics
TOP: Demand | Supply MSC: Definitional

8. GDP is the most closely watched economic statistic because it is thought to be the best single measure of a society’s economic well-being.
ANS: T

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