Macroeconomics Quiz

  All short answers must contain information using no external research.   You are required to respond in your own words using applicable examples and knowledge gained from this course.  A typical short answer should be between 100-150 words. 
QUESTION 1

Why do economists analyze the macroeconomy from both a positive and normative perspective?  In your opinion, which is more important and why?

 
QUESTION 2

List and describe in your own words 3 determinant of  aggregate demand and 3 determinants of aggregate supply.

 
QUESTION 3

Explain how supply or demand can be affected when the following occur:

Oranges – after a tornado.
Automobiles – after a major recall.
Spinach – after the FDA announces that spinach can prevent cancer.
Flu Vaccines – after technology was discovered to mass produce flu vaccines.

 
QUESTION 4

Compare and contrast the command economy, the capitalist economy, the traditional economy and the mixed economy.

 
QUESTION 5

What does the GDP indicate about an economy?  Can a GDP be manipulated and thus provide inaccurate information about a country’s economic production?