Macroeconomics primarily studies ___ factors that influence the economy.

Large scale economic factors such as total income and spending.

The term 'aggregate' in macroeconomics refers to a group of economic items that share ___ traits.

Common

True or False: Macroeconomics focuses exclusively on individual market decisions.

False. Macroeconomics looks beyond individual market decisions to address broader economic issues.

What major work by John Maynard Keynes significantly contributed to the popularity of macroeconomics?

'The General Theory of Employment, Interest, and Money' published in 1936.

Riddle: I am an individual or group making decisions that impact the economy, often focused on production and spending. Who am I?

An economic agent.

Fill in the blank: Macroeconomics aims to achieve ___ employment and grow production.

Full

What are some key areas that macroeconomics addresses?

Effects of taxation, budgetary policies, money supply, interest rates, wages, employment, and output.

True or False: Macroeconomic policies are solely aimed at maximizing individual profit.

False. Macroeconomic policies aim to serve public needs and the welfare of the country.

Fill in the blanks: In developing countries, macroeconomic choices aim to reduce ___ and improve access to ___ and primary health care.

Unemployment; education

What is the relationship between macroeconomics and microeconomics?

Macroeconomics examines the aggregate effects of demand and supply forces in markets and deals with policies to modify these forces for societal goals.

What significant event in 1929 led to the reevaluation of economic theories, particularly prompting the emergence of macroeconomics?

The Great Depression caused significant declines in output and employment, prompting economists to rethink how the economy functions.

Fill in the blank: The unemployment rate in the USA rose from ___ in 1929 to ___ in 1933.

3% in 1929 to 25% in 1933.

True or False: Prior to Keynes, the classical tradition believed that all laborers would remain unemployed during economic downturns.

False. The classical tradition believed that all ready laborers would find employment.

What was the primary focus of John Maynard Keynes' book 'The General Theory of Employment, Interest and Money'?

The book examined the economy as a whole and the interdependence of different sectors, addressing issues like prolonged unemployment.

Riddle: I am a theory that emerged after a great depression, changing how economists view employment and production, who am I?

Macroeconomics.

Fill in the blank: Keynes' work was a response to the need to theorize and explain the possibility of ___ unemployment.

Long-lasting

Short Answer: How much did aggregate output in the USA fall from 1929 to 1933?

Aggregate output fell by about 33%.

In a capitalist economy, the primary goal of production is ___

To make a profit

True or False: In a capitalist economy, the government plays a significant role in controlling production prices.

False. The government has no interference in price control.

Fill in the blanks: Capitalist economies are often referred to as ___ or ___ economies.

Free-market, laissez-faire

What is the role of entrepreneurs in a capitalist economy?

Entrepreneurs start businesses based on ideas or products, taking risks and earning rewards.

Riddle: I am the money earned from regular business activities, calculated by price times quantity. What am I?

Revenue

What are the key features of a capitalist economy? List at least three.

Private property, profit motive, freedom of enterprise

MCQ: Which of the following is NOT a feature of a capitalist economy? 1) Consumer choice 2) Government control over prices 3) Profit motive 4) Flexible labor markets

2) Government control over prices

Fill in the blank: Wage labour is work done in exchange for a ___ rate.

Wage