Principles of Macroeconomics: Exam Questions
Monroe College
Instructor: Carlo Auguste Take home test 2
Student name : James Demesvar
Macroeconomics
I. Current event questions
a. Summarize the history (creation) of the Central Bank of the US
Re: The First Bank of the United States was founded after the revolutionary war in 1795 - 1797 . The United States was in debts cause by the War. Therfore, President Alexander Hamilton advised of the bank to handle the colossal war debt and also create some kind of currency.
b. Give the full name of and time in office for the current chairman of the Federal Reserve Bank and his predecessor
Re: Since February 3, 2014, Janet Yellen is the current chairperson for Federal Reserve Bank and her predecessor is Ben S. Bernanke.
II. Theoretical questions
1. Define macroeconomics and explain its roots
Re:(A) Macroeconomics is study of a country’s larger economic issues, such as how firms compete, the effects of government policies, and how an economy maintains and allocates its scarce resources.
Re:(B) As the world economy has experienced a range of perplexity , such as mass unemployment rate during the Great depression of the 1930s, rapid inflation in the 1970s and other recessions in the early 1980s through 1990s. As a result many economists have analyze them and somehow came up with an solution called macroeconomics. Which study the over whole the behavior of an economic system.
2. State and explain the three different macroeconomics policies
Re(A): The three different macroeconomics policies are: Economic Growth, Low Unemployment and Low inflation.
(B) Economic Growth is the increase of the total physical output of the final goods and services of an economy.
(C) Low unemployment occur when the natural rate is a below due to some changes in the economy .
(D)Low inflation is decrease in the overall price level.
3. Explain the three different market arenas
Re(A) Goods and Services Market is when the household seller , the government and outsiders buy goods and
Instructor: Carlo Auguste Take home test 2
Student name : James Demesvar
Macroeconomics
I. Current event questions
a. Summarize the history (creation) of the Central Bank of the US
Re: The First Bank of the United States was founded after the revolutionary war in 1795 - 1797 . The United States was in debts cause by the War. Therfore, President Alexander Hamilton advised of the bank to handle the colossal war debt and also create some kind of currency.
b. Give the full name of and time in office for the current chairman of the Federal Reserve Bank and his predecessor
Re: Since February 3, 2014, Janet Yellen is the current chairperson for Federal Reserve Bank and her predecessor is Ben S. Bernanke.
II. Theoretical questions
1. Define macroeconomics and explain its roots
Re:(A) Macroeconomics is study of a country’s larger economic issues, such as how firms compete, the effects of government policies, and how an economy maintains and allocates its scarce resources.
Re:(B) As the world economy has experienced a range of perplexity , such as mass unemployment rate during the Great depression of the 1930s, rapid inflation in the 1970s and other recessions in the early 1980s through 1990s. As a result many economists have analyze them and somehow came up with an solution called macroeconomics. Which study the over whole the behavior of an economic system.
2. State and explain the three different macroeconomics policies
Re(A): The three different macroeconomics policies are: Economic Growth, Low Unemployment and Low inflation.
(B) Economic Growth is the increase of the total physical output of the final goods and services of an economy.
(C) Low unemployment occur when the natural rate is a below due to some changes in the economy .
(D)Low inflation is decrease in the overall price level.
3. Explain the three different market arenas
Re(A) Goods and Services Market is when the household seller , the government and outsiders buy goods and