Chapter17Macroeconomic and industry Analysis1. A top down analysis of a firm starts with ____________. D. the global economy2. An example of a highly cyclical industry is ________. A. the automobile industry3. Demand-side economics is concerned with _______. A. government spending and tax levelsB. monetary policyC. fiscal policyE. A, B, and C4. The most widely used monetary tool is ___________. C. open market operations5. The "real", or inflation-adjusted, exchange rate, is C. the purchasing power ratio.6. The "normal" range of price-earnings ratios for the S&P 500 Index is D. between 12 and 257. Monetary policy is determined by C. the board of Governors of the Federal Reserve System.8. A trough is ________. B. a transition from a contraction in the business cycle to the start of an expansion9. A peak is ________. A. a transition from an expansion in the business cycle to the start of a contraction10. If the economy is growing, firms with high operating leverage will experience __________. A. higher increases in profits than firms with low operating leverage.11. If the economy is shrinking, firms with high operating leverage will experience __________. A. higher decreases in profits than firms with low operating leverage.12. If the economy is growing, firms with low operating leverage will experience __________. C. smaller increases in profits than firms with high operating leverage.13. If the economy is shrinking, firms with low operating leverage will experience __________. C. smaller decreases in profits than firms with high operating leverage.14. Industrial production refers to _________. C. the total manufacturing output in the economy.15. GDP refers to _________. D. the total production of goods ...
