1. While the study of economic activities of individuals, households, and businesses at the

sub-national level is the concern of __________________, the study of economic

activities at the national and global level is the concern of __________________.

2. When producers change their level of output, rather than price, in response to higher or

lower sales, this is called _____________________.

3. The three main macroeconomic goals identified in this chapter are ,

, and .

4. The increase in the level of production in a country or region is called

_______________ growth while improvements in diet, housing, medical attention,

education, working conditions, access to care, transportation, communication,

entertainment, etc. is called growth.

5. The process of moving from a situation of poverty and deprivation to a situation of

increased production and plenty is referred to as .

6. The fluctuations in the level of production, including recessions on the one hand

and booms on the other hand, is called .

7. The goal that recognizes a serious responsibility to future generations is the goal of

8. The school of economics that is associated with the idea that individual self-interest is

a positive force and that governments should let markets function without interference is

called .

9. The economist who argued that the market mechanism can fail by leaving insufficient

demand and that governments could intervene by increasing aggregate demand was

named .

10. The school of thought that argued that governments should aim for steadiness in the

money supply rather than play an active role is called .

23. Explain how Keynesian economics views the role of markets and government

intervention in fighting business cycles.

24. Explain how Monetarist economics views the role of markets and government

intervention in fighting business cycles.

25. How does the classical/Keynesian synthesis combine elements from both the

classical and Keynesian schools?

26. What two developments are demanding new ways of looking at the economic world

in the 21st century? What kinds of sustainability questions do they raise?r