Label the following statements as either True or False 1 Mac

Label the following statements as either True or False. 1. Macroeconomics became a separate branch of economics in response to the economic unrest created by the War of 1812. 2. Governments can affect overall spending in an economy by using various tools of macroeconomic policy. 3. A recession refers to a situation when overall spending is too high compared to an economy\'s production capabilities. 4. Governments can affect overall spending by changing how much it spends on goods and services.

Label the following statements as either True or False. 1. Macroeconomics became a separate branch of economics in response to the economic unrest created by the War of 1812. 2. Governments can affect overall spending in an economy by using various tools of macroeconomic policy 3. A recession refers to a situation when overall spending is too high compared to an economy\'s production capabilities. . Governments can affect overall spending by changing how much it spends on goods and services. True False

Solution

1.False. Macroeconomics became as a separate branch of economics during 1920 and 1930’s as the economy experienced the mass unemployment
2.True, governments uses macroeconomic tools like fiscal policy in order to influence the GDP growth by making people to consume more.
3.False, It is defined as decrease in real GDP or consumption because of decrease in economic activity or growth.
4.True, with the changes in government spending on goods and services, the economic activity do change which would affect overall spending.