BMAL 590 – Macroeconomics Exam With Complete Solutions 2025

BMAL 590 – Macroeconomics Exam With Complete
Solutions 2025.




An economic recession refers to - CORRECT ANSWER✔✔A period, typically two consecutive quarters,
J J J J J J J J J J J J




during which aggregate output declines
J J J J J




Deflation refers to - CORRECT ANSWER✔✔A decrease in overall price level
J J J J J J J J J J




Macroeconomics is the branch of economics that deals with - CORRECT ANSWER✔✔The economy as a
J J J J J J J J J J J J J J




whole
J

, The school of economics thought that argues that price and wage rigidities do not provide the following
J J J J J J J J J J J J J J J J




reasoning for an active macro economic policy framework is referred to as - CORRECT ANSWER✔✔Neo-
J J J J J J J J J J J J J J J




Keynesians



The primary driver for the emergence of macro economic theory as we know it today was the failure of -
J J J J J J J J J J J J J J J J J J J




CORRECT ANSWER✔✔The classical model to explain the prolonged existence of high unemployment
J J J J J J J J J J J J




during the great depression
J J J J




The approach that uses monetary policy to stabilize the economy is known as - CORRECT ANSWER✔✔Fine-
J J J J J J J J J J J J J J J




tuning of demand J J




According to the keynesian theory the level of unemployment is determined by - CORRECT ANSWER✔✔The
J J J J J J J J J J J J J J




level of aggregate demand for goods and services
J J J J J J J J




Assume you are an author and your new book is priced at 9.95 the publisher expect to sell 5,000 copies at this
J J J J J J J J J J J J J J J J J J J J J




price. Suppose the publisher decides to offer the book at 8.95, the publisher can expect to sell - CORRECT
J J J J J J J J J J J J J J J J J J J




ANSWER✔✔More than 5000 copies
J J J J




Add a price of 99.95 the manufacture of a popular herbal supplement is willing to produce 10,000 packed
J J J J J J J J J J J J J J J J J




units of the supplement. At a price of 149.95, it is likely that the manufacturer would be willing to produce -
J J J J J J J J J J J J J J J J J J J J J




CORRECT ANSWER✔✔More than 10,000
J J J J




If Ultrabook manufacturers are producing Ultrabooks faster than people want to buy them - CORRECT
J J J J J J J J J J J J J J




ANSWER✔✔There is an excess of supply and price may be expected to decrease
J J J J J J J J J J J J J




Disposable income is the part of the household income remaining after the deduction of - CORRECT ANSWER
J J J J J J J J J J J J J J J J




✔✔Income tax J