İKTİSADA GİRİŞ II

Great Depression is the period started in 1929.

One of the most important studies of economic history is General Theory of Employment, Interest and Money written by John Maynard Keynes in 1936.

"Inflation" is the continuous increases experienced in general price level.

Macroeconomic analysis deals with how macro variables of a national economy affect each other. Therefore, the correct choice is B.

The economic events during 1930s is called the Great Depression. Therefore, the correct choice is C.

There are three basic indicators related to health of an economy, thus within the field of macroeconomics: Unemployment rate, inflation rate and output growth rate.

Cyclical unemployment

There are mainly three tools for the government to affect the macro economy: Fiscal policy, monetary policy and supply-side policies.

Macroeconomics focuses on behaviors of four groups in an economy: Households and businesses (private sector), government (public sector) and other countries (international sector).

According to summarized three different aspects of GDP, it can be calculated in three different ways:
• In terms of the total value of goods and services produced,
• In terms of the income obtained in return for producing goods and services,
• In terms of the expenditures made for goods and services produced.

Keynes didn't defend but refused the idea that the employment was determined by prices and wages. Therefore, the correct choice is A.

Unemployment rate, inflation rate and output growth rate are the three basic indicators related to health of an economy. Therefore, the correct choice is D.

General price level is the index value of weighted average of goods’ prices in a specified period of time. Therefore, the correct choice is E.

If any government decrease taxes and/or rise expenditures to avoid the economic recession, that basically means expansionary fiscal policy. Therefore, the correct choice is E.

Macroeconomics focuses on behaviours of four groups in an economy: Households and businesses (private sector), government (public sector) and other countries (international sector). Therefore, the correct choice is A.

Price index is the ratio of the value of a basket of goods and services with current prices to the value of the same basket with the base year’s prices

Gross domestic product is the total value of all final goods and services produced and expressed with market prices in a specific period of time. Therefore, the correct choice is B

Consumption expenditures are the total of spending which is directly made by people for goods and services to satisfy their daily needs. Therefore, the correct choice is C.

GDP and other income concepts based on it do not make sense if the population of the country in question is unknown. Therefore, the correct choice is A.

To compare the people’s wealth levels living in various countries, per capita national income figures are used. For this purpose, the figures calculated with national
currency firstly is stated with a common monetary measure. Second, GDP and other income concepts exclude the most valuable activity for an individual: leisure. Third, GDP and other income concepts do not take the quality changes of produced goods into account. Fourth, GDP and other income concepts do not reflect some social costs originated from production of goods and services. Fifth, GDP and other income concepts do not reflect some social costs originated from production of goods and services. Sixth, there are many activities need to be added to GDP in principle but not included actually. Therefore, (d) has incorrect because indicated that GDP and other income concepts do reflect some social costs originated from production of goods and services instead of GDP and other income concepts do not reflect some social costs originated from production of goods and services.