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. 

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


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


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.


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


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

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