What are the three primary measures used in macroeconomics to assess the performance of an economy?
What will be an ideal response?
The three primary measures used in macroeconomics to assess the performance of an economy are real GDP, unemployment, and inflation. Real GDP provides an overall indicator of output or production in the economy while unemployment measures the degree to which labor resources are being fully used. Inflation tracks the overall increase in the level of prices in the economy. Each measure is important for tracking the short-run and long-run health of the economy and for creating macroeconomic models to address important policy questions.
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The larger the number of bidders in an open outcry Dutch auction, ________
A) the lower is the maximum willingness to pay of each bidder B) the smaller is the consumer surplus earned by the winner C) the larger is the quantity offered by the auctioneer for auction D) the lower is the value of the starting bid
The monetary policy target the Federal Reserve focuses primarily on today is
A) M1. B) M2. C) the interest rate. D) the inflation rate. E) the unemployment rate.