There is statistical evidence to suggest that under English rule, colonists experienced (a) financial chaos. (b) economic harm in terms of commerce, trade and investment. (c) growth and prosperity. (d) all of the above. ANSWER (c)
Date: September 10th, 2020
The Keynesian aggregate supply schedule slopes upward because of a. unstable expectations. b. inflexible wages and prices. c. changes in technology. d. differences between actual and expected price levels. ANSWER B
Date: September 10th, 2020
During the Clinton administration, a. government savings rose significantly. b. total savings savings rose significantly. c. private savings rose because an increase in the tax rates on upper-income Americans and more government regulation d. both b and c. ANSWER A
Date: September 10th, 2020
In the face of an increase in oil prices, if the government’s primary objective is to keep prices from falling, then policymakers should a. reduce taxes. b. reduce the money supply. c. increase government spending. d. increase aggregate supply through regulation. ANSWER B
Date: September 10th, 2020
By almost every measure of social and economic well-being, for how long after the Civil War (1861–1865) did the South lag behind the rest of the country? (a) For almost a century (b) For almost a decade before it adapted to life without slavery (c) For only two decades (d) Right down to the present […]
Date: September 10th, 2020
The U.S. economy is not a perfectly competitive market. There are costs associated with negotiating contracts, enforcing agreements, taxes and less than perfectly competitive firms. Nevertheless, according to Wallis and North (1986), the U.S. economy has grown in the presence of these transaction costs and these costs have risen sharply as a percentage of GDP […]
Date: September 10th, 2020
The American colonies’ estimated cost of membership in the British Empire was, according to most economic historians, fairly large. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
What was the primary reason the Income Tax Amendment of 1913 was passed? (a) To pay off the public debt accumulated during the Civil War (1861–65) (b) To pay off the public debt accumulated during World War II (1941–45) (c) To grant the federal government access to revenues beyond those from land sales, customs and […]
Date: September 10th, 2020
Keynesians and monetarists share the belief that a. recessions are caused by falls in aggregate demand. b. the demand for money is stable. c. excess demand is a chronic problem in modern economies. d. the Federal Reserve is responsible for most recessions. e. stabilization policy is beneficial. ANSWER A
Date: September 10th, 2020
An essentially classical feature in the supply-side perception of the saving-investment process is an emphasis on a. income and, therefore, on aggregate demand. b. the importance of rates of return as influences on the rates of saving, investment, and thus capital formation. c. the inflation rate. d. money neutrality e. both b and d. […]
Date: September 10th, 2020
