Modern macroeconomics emerged as a response to the _________.

Great Depression
World War I
the Industrial Revolution
World War II

Stagflation occurs when there is ___________________.

rising inflation and rising unemployment
falling inflation and falling unemployment
falling inflation and rising unemployment
rising inflation and falling unemployment

Economic growth ___________.

is the expansion of the economy's capacity to produce goods and services
has increased in the United Kingdom since the 1960s
can be pictured as a movement along the production possibility frontier
means that everyone in the economy will become richer

A productivity growth slowdown occurred in the United Kingdom in each of the following periods except the ____________.

early 1960s
early 1990s
early 1980s
mid 1970s

The business-cycle turning point that follows a recession is ____________.

a trough
a boom
an expansion
a peak

To compare growth rates over time between two countries, we must know each country's ____________.

real GDP and population
potential GDP and population
real GDP and unemployment rate
real GDP

A discouraged worker is ____________________.

not counted as being unemployed
unhappy with his or her level of unemployment benefits
employed but is very unhappy with his or her job
counted as being unemployed

Macroeconomic policy challenges include all of the following except ________________.

zero unemployment
preventing a large current account deficit
stabilization of the business cycle
low inflation

A current account deficit is always matched by a ________________.

capital and financial account surplus
a rise in the price of exports
lower inflation
capital and financial account deficit

The current account of the United Kingdom includes all of the following items except _________________.

receipts from foreign investments in the United Kingdom
receipts from exports
income from workers employed abroad
payments for imports