Taxes impact incentives to use resources since they distort relative prices. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
According to the theory of money, what is the most compelling evidence to use against those researchers or historians who believe that England was responsible for creating a shortage of money in colonial America? (a) Colonial growth in commerce and trade proceeded. (b) The colonists paid moderate rates of interest. (c) Investment in colonial America […]
Date: September 10th, 2020
The supply-siders argue that investment is a. primarily a function of current income. b. highly responsive to changes in after-tax real interest rates. c. primarily a function of expectations. d. both a and b. ANSWER B
Date: September 10th, 2020
The amount earned by the tertiary laborer is determined by labor productivity in the primary and secondary sectors of the U.S. economy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Stagflation can be explained by a. the IS curve shifting up. b. the IS curve shifting down. c. the LM curve shifting to the right. d. the LM curve shifting to the left. e. none of the above. ANSWER E
Date: September 10th, 2020
According to the new classical system, an unanticipated increase in the money stock a. will shift the aggregate supply schedule only. b. will shift the aggregate demand schedule only. c. will shift both the aggregate demand and aggregate supply schedules. d. None of the above ANSWER B
Date: September 10th, 2020
In answering the question “Did the Civil War help promote economic growth and industrialization?” Hughes and Cain (2011) conclude that (a) the war, rather than being a major stimulus to industry, was actually a great drain that slowed U.S. economic development for a time. (b) the war was indeed a major stimulus to industry because […]
Date: September 10th, 2020
Keynesians view the economy as unstable as a result of the instability of aggregate demand. Which component of aggregate demand is primarily responsible? a. Net export b. expectations c. Consumption d. Private investment e. both b and d. ANSWER E
Date: September 10th, 2020
For the first time since the Civil War (1861–65), laborers were forced into active military service during World War I (1914–18). Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Money is always neutral. This statement is most likely to be made by a proponent of the a. new Keynesian model. b. monetarist model. c. real business cycle model. d. classical model. e. both c and d. ANSWER C
Date: September 10th, 2020
