World War I (1914–18) caused inflation because (a) war production stressed an economy already operating close to full employment. (b) fiscal policy mandated it. (c) the Federal Reserve System required it. (d) inflation always occurs in times of war. ANSWER (a)
Date: September 10th, 2020
The system of sharecropping that emerged after the Civil War (1861–1865) (a) gave neither the owners of land nor the sharecroppers strong incentives to make improvements in agricultural production. (b) gave both the owners of land and the sharecroppers strong incentives to make improvements in agricultural production. (c) gave the owners of land but not […]
Date: September 10th, 2020
Which of the following explains why the AD curve is downward sloping? a. a lower price level forces the government to reduce taxes, shifting the IS curve to the right and increasing income. b. A lower price level forces the central bank to increase the money supply, shifting the LM curve to the right and […]
Date: September 10th, 2020
The Navigation Acts (1651 and later amendments) were intended to promote shipping and international commerce. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
According to supply-side economists, the incentive to save during the Clinton Administration fell due to a combination of a. an increase in net export and a budget surplus. b. an increase in the tax rates on upper-income Americans and more government regulation. c. higher inflation and higher tax rates on lower-income Americans. d. None of […]
Date: September 10th, 2020
In the 20th century, tertiary employment accounted for roughly (a) fifty percent of the total job increases. (b) ninety percent of the total job increases. (c) thirty percent of the total job increases. (d) seventy percent of the total job increases. ANSWER (a)
Date: September 10th, 2020
During World War I (1914–18), national debt soared, leading to (a) money creation and inflation. (b) money creation and deflation. (c) money destruction and inflation. (d) money destruction and deflation. ANSWER (a)
Date: September 10th, 2020
The inflation that occurred during the Civil War (1861–1865) can be described as all of the following except (a) A means of expropriating resources to fight the war (b) A form of taxation to provide resources to fight the war (c) A representation of a decrease in the purchasing power of money (d) A less […]
Date: September 10th, 2020
Under English law, the rights of colonists differed from those of the English. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
All of the following will shift the AD curve to the right except a(n): a. increase in consumer confidence. b. decrease in taxes. c. increase in government spending. d. increase in the MPC. e. increase in transfer payments. ANSWER E
Date: September 10th, 2020
