, TESTBANK FOR Macroeconomics, 9th edition
Olivier Blanchard
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Macroeconomics, 9e (Blanchard)
Appendix 1: An Introduction to the National Income and Product Accounts
Multiple Choice Questions
1) If GDP exceeds GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) receipts of factor income from the rest of the world exceed payments of factor income to the
rest of the world
Answer: D
AACSB: Application of knowledge
Status: 8e question
2) If GDP is less than GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) none of these
Answer: D
AACSB: Application of knowledge
Status: 8e question
3) Net national product (NNP) is equal to ________.
A) personal income minus taxes
B) GNP minus consumption of fixed capital
C) GDP plus consumption of fixed capital
D) national income plus consumption of fixed capital
Answer: B
AACSB: Application of knowledge
Status: 8e question
4) Which of the following is not a component of consumption?
A) nondurable goods
B) purchase of a new condominium
C) education expenses
D) none of these
Answer: B
AACSB: Application of knowledge
Status: 8e question
1
Copyright © 2025 Pearson Education, Inc.
,5) Changes in business inventories will be positive when ________.
A) production exceeds sales
B) production is less than sales
C) a trade surplus exists
D) a budget surplus exists
Answer: A
AACSB: Application of knowledge
Status: 8e question
6) Suppose exports are greater than imports. Given this information, we know with certainty that
________.
A) a trade surplus exists
B) GNP > GDP
C) GNP < GDP
D) the change in business inventories is positive
Answer: A
AACSB: Application of knowledge
Status: 8e question
7) Which of the following is not included in National Income?
A) indirect taxes
B) wages and salaries
C) net interest
D) rental income of persons
Answer: A
AACSB: Application of knowledge
Status: 8e question
8) Which of the following is included in National Income?
A) indirect taxes
B) consumption of fixed capital
C) proprietors' income
D) all of these
Answer: C
AACSB: Application of knowledge
Status: 8e question
9) Which of the following is not included in investment?
A) the purchase of new equipment by firms
B) nondurable goods
C) the purchase of a new home
D) none of these
Answer: B
AACSB: Application of knowledge
Status: 8e question
2
Copyright © 2025 Pearson Education, Inc.
,10) If GDP is more than GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) none of these
Answer: D
AACSB: Application of knowledge
Status: 8e question
11) Changes in business inventories will be negative when ________.
A) production exceeds sales
B) production is less than sales
C) a trade surplus exists
D) a budget surplus exists
Answer: B
AACSB: Application of knowledge
Status: 8e question
12) Suppose exports are less than imports. Given this information, we know with certainty that
________.
A) a trade deficit exists
B) GNP > GDP
C) GNP < GDP
D) the change in business inventories is positive
Answer: A
AACSB: Application of knowledge
Status: 8e question
3
Copyright © 2025 Pearson Education, Inc.
,Macroeconomics, 9e (Blanchard)
Appendix 2: A Math Refresher
Multiple Choice Questions
1) A linear relation Y=X is represented by ________.
A) the 45 degree line
B) X axis
C) Y axis
D) a ray
Answer: A
AACSB: Analytical thinking
Status: 8e question
2) In the linear consumption function C= c0 + c1YD, which of the following is not correct?
A) c1 is marginal propensity to consume
B) YD is disposable income
C) c1 is the intercept
D) c1 is the slope
Answer: C
AACSB: Analytical thinking
Status: 8e question
3) Which of the following is not correct?
A) GDP grows at a constant rate every year.
B) A recession may lead to a few years of negative GDP growth.
C) The evolution of GDP would be better represented by using a logarithmic scale.
D) The Great Depression was not associated with a permanently lower level of output.
Answer: A
AACSB: Analytical thinking
Status: 8e question
4) In the linear consumption function C= c0 + c1YD, which of the following is correct?
A) c1 is marginal propensity to consume
B) YD is real GDP
C) c1 is the intercept
D) c0 is the slope
Answer: A
AACSB: Analytical thinking
Status: 8e question
1
Copyright © 2025 Pearson Education, Inc.
,5) If the evolution of X using logarithmic scale is a straight line, then ________.
A) X is growing at a constant rate over time
B) X is a linear function of time t
C) X is growing at different rates over time
D) none of these
Answer: A
AACSB: Analytical thinking
Status: 8e question
6) If the evolution of X using logarithmic scale is not a straight line, then ________.
A) X is growing at a constant rate over time
B) X is a linear function of time t
C) X is growing at different rates over time
D) none of these
Answer: C
AACSB: Analytical thinking
Status: 8e question
2
Copyright © 2025 Pearson Education, Inc.
,Macroeconomics, 9e (Blanchard)
Appendix 3: An Introduction to Econometrics
Multiple Choice Questions
1) "Ordinary least squares" is a technique that can be used to ________.
A) identify the best model
B) determine which variables in a model are endogenous and which are exogenous
C) obtain a bar graph showing successive quarterly increases in output
D) obtain a line describing consumption behavior in the real world
E) determine the direction of causation between consumption and income
Answer: D
AACSB: Analytical thinking
Status: 8e question
2) When we estimate a regression to determine the relationship between changes in consumption
and changes in current income, we find that ________.
A) there are no residuals
B) the R2 is zero
C) the MPC is larger than one
D) all of these
E) none of these
Answer: E
AACSB: Analytical thinking
Status: 8e question
3) When we use ordinary least squares to determine the relationship between changes in
consumption and changes in both current and lagged income, we find that ________.
A) only current income influences current consumption
B) current income has no impact on current consumption
C) consumption is not affected by income in any quarter
D) current income, last quarter's income, and income two quarter's ago all have the same impact
on current consumption
E) current income has a greater impact on consumption than income lagged one quarter
Answer: E
AACSB: Analytical thinking
Status: 8e question
4) When estimating a regression line, a high R2‚ tells us we have ________.
A) a good fit
B) large residuals
C) correctly determined the direction of causation
D) all of these
E) none of these
Answer: A
AACSB: Analytical thinking
Status: 8e question
1
Copyright © 2025 Pearson Education, Inc.
,5) A large "T-statistic" tell us that ________.
A) a tiny change in the independent variable will cause a relatively large change in the dependent
variable
B) we do not have enough data to obtain an accurate regression line
C) we can be confident that our estimated coefficient is not zero
D) we should have included more "lags" in our model
E) we have incorrectly switched the dependent and independent variables in our model
Answer: C
AACSB: Analytical thinking
Status: 8e question
6) Which of the following problems would lead an economist to use instrument variable
methods?
A) The dependent variable has an impact on the independent variable.
B) There are too few quarters of data.
C) There are too many independent variables.
D) The R2 is too high.
E) The residuals are too small.
Answer: A
AACSB: Analytical thinking
Status: 8e question
7) A key step in using instrument variable methods is to ________.
A) find one or more exogenous variables that influence your dependent variable
B) decrease the number of lags in the regression equation
C) conduct interviews to determine how accurate your data really is
D) run the regression on two different computers to see if the results differ
E) eliminate the dependent variable
Answer: A
AACSB: Analytical thinking
Status: 8e question
2
Copyright © 2025 Pearson Education, Inc.
, Macroeconomics, 9e (Blanchard)
Chapter 1: A Tour of the World
1.1 The Covid-19 Crisis, Inflation, and Interest Rates
1) The Covid-19 crisis of 2020 started in ________.
A) the United Kingdom
B) the Euro Zone
C) San Diego, California
D) Wuhan, China
Answer: D
AACSB: Application of knowledge
Status: New question 9e
2) U.S. inflation peaked at ________ following the Covid-19 pandemic.
A) 9.9%
B) 12.1%
C) 7.2%
D) 10.6%
Answer: A
AACSB: Application of knowledge
Status: New question 9e
3) What was the initial response of most central banks to the Covid-19 pandemic and subsequent
lockdowns of most nation's economies?
A) Central banks reduced interest rates to near zero.
B) Central banks increased interest rates dramatically.
C) Central banks began selling financial assets immediately.
D) Central banks sent cash to the citizens of their respective nations.
Answer: A
AACSB: Analytical thinking
Status: New question 9e
4) Why did inflation surge in the years immediately following the Covid-19 pandemic?
Answer: Economies overheated. In 2020 and 2021, governments put in place programs to
protect people who were no longer working and receiving income, and to protect firms that could
not sell and would have gone bankrupt without government support. These programs were
generous, especially so in the United States. The extra cash in consumers' pockets resulted in
very strong consumer demand leading to overheating in both labor and goods markets. In the
labor market, unemployment, which had peaked during lockdowns, decreased rapidly, putting
pressure on wages. In the goods markets, high demand led to high demand for commodities,
leading to large increases in the world prices of energy and food, thus affecting inflation even in
countries and regions that had more limited fiscal programs, such as the euro area. Firms
struggled to get inputs and bid prices even higher.
AACSB: Written and oral communication
Status: New question 9e
1
Copyright © 2025 Pearson Education, Inc.
Olivier Blanchard
Notes
1- The file is chapter after chapter.
2- We have shown you few pages sample.
3- The file contains all Appendix and Excel sheet
if it exists.
4- We have all what you need, we make update
at every time. There are many new editions
waiting you.
5- If you think you purchased the wrong file You
can contact us at every time, we can replace it
with true one.
Our email:
,Macroeconomics, 9e (Blanchard)
Appendix 1: An Introduction to the National Income and Product Accounts
Multiple Choice Questions
1) If GDP exceeds GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) receipts of factor income from the rest of the world exceed payments of factor income to the
rest of the world
Answer: D
AACSB: Application of knowledge
Status: 8e question
2) If GDP is less than GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) none of these
Answer: D
AACSB: Application of knowledge
Status: 8e question
3) Net national product (NNP) is equal to ________.
A) personal income minus taxes
B) GNP minus consumption of fixed capital
C) GDP plus consumption of fixed capital
D) national income plus consumption of fixed capital
Answer: B
AACSB: Application of knowledge
Status: 8e question
4) Which of the following is not a component of consumption?
A) nondurable goods
B) purchase of a new condominium
C) education expenses
D) none of these
Answer: B
AACSB: Application of knowledge
Status: 8e question
1
Copyright © 2025 Pearson Education, Inc.
,5) Changes in business inventories will be positive when ________.
A) production exceeds sales
B) production is less than sales
C) a trade surplus exists
D) a budget surplus exists
Answer: A
AACSB: Application of knowledge
Status: 8e question
6) Suppose exports are greater than imports. Given this information, we know with certainty that
________.
A) a trade surplus exists
B) GNP > GDP
C) GNP < GDP
D) the change in business inventories is positive
Answer: A
AACSB: Application of knowledge
Status: 8e question
7) Which of the following is not included in National Income?
A) indirect taxes
B) wages and salaries
C) net interest
D) rental income of persons
Answer: A
AACSB: Application of knowledge
Status: 8e question
8) Which of the following is included in National Income?
A) indirect taxes
B) consumption of fixed capital
C) proprietors' income
D) all of these
Answer: C
AACSB: Application of knowledge
Status: 8e question
9) Which of the following is not included in investment?
A) the purchase of new equipment by firms
B) nondurable goods
C) the purchase of a new home
D) none of these
Answer: B
AACSB: Application of knowledge
Status: 8e question
2
Copyright © 2025 Pearson Education, Inc.
,10) If GDP is more than GNP, we know with certainty that ________.
A) a budget deficit exists
B) a trade surplus exists
C) a trade deficit exists
D) none of these
Answer: D
AACSB: Application of knowledge
Status: 8e question
11) Changes in business inventories will be negative when ________.
A) production exceeds sales
B) production is less than sales
C) a trade surplus exists
D) a budget surplus exists
Answer: B
AACSB: Application of knowledge
Status: 8e question
12) Suppose exports are less than imports. Given this information, we know with certainty that
________.
A) a trade deficit exists
B) GNP > GDP
C) GNP < GDP
D) the change in business inventories is positive
Answer: A
AACSB: Application of knowledge
Status: 8e question
3
Copyright © 2025 Pearson Education, Inc.
,Macroeconomics, 9e (Blanchard)
Appendix 2: A Math Refresher
Multiple Choice Questions
1) A linear relation Y=X is represented by ________.
A) the 45 degree line
B) X axis
C) Y axis
D) a ray
Answer: A
AACSB: Analytical thinking
Status: 8e question
2) In the linear consumption function C= c0 + c1YD, which of the following is not correct?
A) c1 is marginal propensity to consume
B) YD is disposable income
C) c1 is the intercept
D) c1 is the slope
Answer: C
AACSB: Analytical thinking
Status: 8e question
3) Which of the following is not correct?
A) GDP grows at a constant rate every year.
B) A recession may lead to a few years of negative GDP growth.
C) The evolution of GDP would be better represented by using a logarithmic scale.
D) The Great Depression was not associated with a permanently lower level of output.
Answer: A
AACSB: Analytical thinking
Status: 8e question
4) In the linear consumption function C= c0 + c1YD, which of the following is correct?
A) c1 is marginal propensity to consume
B) YD is real GDP
C) c1 is the intercept
D) c0 is the slope
Answer: A
AACSB: Analytical thinking
Status: 8e question
1
Copyright © 2025 Pearson Education, Inc.
,5) If the evolution of X using logarithmic scale is a straight line, then ________.
A) X is growing at a constant rate over time
B) X is a linear function of time t
C) X is growing at different rates over time
D) none of these
Answer: A
AACSB: Analytical thinking
Status: 8e question
6) If the evolution of X using logarithmic scale is not a straight line, then ________.
A) X is growing at a constant rate over time
B) X is a linear function of time t
C) X is growing at different rates over time
D) none of these
Answer: C
AACSB: Analytical thinking
Status: 8e question
2
Copyright © 2025 Pearson Education, Inc.
,Macroeconomics, 9e (Blanchard)
Appendix 3: An Introduction to Econometrics
Multiple Choice Questions
1) "Ordinary least squares" is a technique that can be used to ________.
A) identify the best model
B) determine which variables in a model are endogenous and which are exogenous
C) obtain a bar graph showing successive quarterly increases in output
D) obtain a line describing consumption behavior in the real world
E) determine the direction of causation between consumption and income
Answer: D
AACSB: Analytical thinking
Status: 8e question
2) When we estimate a regression to determine the relationship between changes in consumption
and changes in current income, we find that ________.
A) there are no residuals
B) the R2 is zero
C) the MPC is larger than one
D) all of these
E) none of these
Answer: E
AACSB: Analytical thinking
Status: 8e question
3) When we use ordinary least squares to determine the relationship between changes in
consumption and changes in both current and lagged income, we find that ________.
A) only current income influences current consumption
B) current income has no impact on current consumption
C) consumption is not affected by income in any quarter
D) current income, last quarter's income, and income two quarter's ago all have the same impact
on current consumption
E) current income has a greater impact on consumption than income lagged one quarter
Answer: E
AACSB: Analytical thinking
Status: 8e question
4) When estimating a regression line, a high R2‚ tells us we have ________.
A) a good fit
B) large residuals
C) correctly determined the direction of causation
D) all of these
E) none of these
Answer: A
AACSB: Analytical thinking
Status: 8e question
1
Copyright © 2025 Pearson Education, Inc.
,5) A large "T-statistic" tell us that ________.
A) a tiny change in the independent variable will cause a relatively large change in the dependent
variable
B) we do not have enough data to obtain an accurate regression line
C) we can be confident that our estimated coefficient is not zero
D) we should have included more "lags" in our model
E) we have incorrectly switched the dependent and independent variables in our model
Answer: C
AACSB: Analytical thinking
Status: 8e question
6) Which of the following problems would lead an economist to use instrument variable
methods?
A) The dependent variable has an impact on the independent variable.
B) There are too few quarters of data.
C) There are too many independent variables.
D) The R2 is too high.
E) The residuals are too small.
Answer: A
AACSB: Analytical thinking
Status: 8e question
7) A key step in using instrument variable methods is to ________.
A) find one or more exogenous variables that influence your dependent variable
B) decrease the number of lags in the regression equation
C) conduct interviews to determine how accurate your data really is
D) run the regression on two different computers to see if the results differ
E) eliminate the dependent variable
Answer: A
AACSB: Analytical thinking
Status: 8e question
2
Copyright © 2025 Pearson Education, Inc.
, Macroeconomics, 9e (Blanchard)
Chapter 1: A Tour of the World
1.1 The Covid-19 Crisis, Inflation, and Interest Rates
1) The Covid-19 crisis of 2020 started in ________.
A) the United Kingdom
B) the Euro Zone
C) San Diego, California
D) Wuhan, China
Answer: D
AACSB: Application of knowledge
Status: New question 9e
2) U.S. inflation peaked at ________ following the Covid-19 pandemic.
A) 9.9%
B) 12.1%
C) 7.2%
D) 10.6%
Answer: A
AACSB: Application of knowledge
Status: New question 9e
3) What was the initial response of most central banks to the Covid-19 pandemic and subsequent
lockdowns of most nation's economies?
A) Central banks reduced interest rates to near zero.
B) Central banks increased interest rates dramatically.
C) Central banks began selling financial assets immediately.
D) Central banks sent cash to the citizens of their respective nations.
Answer: A
AACSB: Analytical thinking
Status: New question 9e
4) Why did inflation surge in the years immediately following the Covid-19 pandemic?
Answer: Economies overheated. In 2020 and 2021, governments put in place programs to
protect people who were no longer working and receiving income, and to protect firms that could
not sell and would have gone bankrupt without government support. These programs were
generous, especially so in the United States. The extra cash in consumers' pockets resulted in
very strong consumer demand leading to overheating in both labor and goods markets. In the
labor market, unemployment, which had peaked during lockdowns, decreased rapidly, putting
pressure on wages. In the goods markets, high demand led to high demand for commodities,
leading to large increases in the world prices of energy and food, thus affecting inflation even in
countries and regions that had more limited fiscal programs, such as the euro area. Firms
struggled to get inputs and bid prices even higher.
AACSB: Written and oral communication
Status: New question 9e
1
Copyright © 2025 Pearson Education, Inc.
