The Tax Reform Act of 2004 a. lowered marginal income tax rates. b. cut taxes on inheritance payments. c. lowered taxes or corporate dividends. d. Both b and c e. All of the above ANSWER E
Date: September 10th, 2020
In which model does there exist a tradeoff between higher inflation and lower unemployment? a. monetarist b. real business cycle. c. new classical d. a and b. e. a tradeoff exists in all of the above. ANSWER D
Date: September 10th, 2020
Union membership is likely to fall as growth in tertiary employment occurs in the private sector. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If business cycles are caused by changes in aggregate demand, you would expect to see a. prices and unemployment moving in the same direction. b. price and unemployment moving in opposite directions. c. prices not moving with unemployment. d. unemployment is not included in the Keynesian model. ANSWER B
Date: September 10th, 2020
During the period in which the Navigation Acts guided colonial trade, international trade was safe and many countries fairly engaged in commercial trade. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Which of the following classical views is (are) accepted by supply-side economists? a. In the intermediate run, growth of capital, labor, and technology determine output. b. The dislike of government intervention in the economy c. changes in output are primarily driven by changes in the natural rate of output. d. Both a and b. e. […]
Date: September 10th, 2020
The best argument against monetarists’ arguments that steady money growth would prevent fluctuations in inflation and unemployment is that: a. the government has best control over fiscal policy and should focus on that. b. large fluctuations in the money supply cannot occur because the supply of money is limited. c. steady money growth does not […]
Date: September 10th, 2020
The largest component of output growth in the U.S. is a. labor productivity growth. b. capital growth c. labor growth. d. knowledge growth. e. None of the above. ANSWER A
Date: September 10th, 2020
Which of the following occurred during World War I (1914–18)? (a) Private markets largely influenced resource allocation. (b) Non-market controls imposed by the government. (c) New income taxes financed 100 percent of the war. (d) Corporate America voluntarily financed 100 percent of the war efforts to protect their interests. ANSWER (b)
Date: September 10th, 2020
Which of the following statements is correct with respect to the debate between the Keynesians and new classical economists? a. Each side criticized monetarism b. The key source of disagreement centered on how people form their expectations. c. Both models believed that recessions were characterized by falling aggregate demand. d. Both believed that unanticipated changes […]
Date: September 10th, 2020
