Which of the following variables will shift the classical aggregate demand curve? a. An increase in government spending b. A decrease in taxes c. An increase in autonomous investment expenditures d. An increase in the money stock e. All of the above ANSWER D
Date: September 10th, 2020
Stanley Engerman’s (1971) work on the economic impact of the Civil War (1861–1865) refuted a view sometimes called the Beard-Hacker thesis. This thesis holds that (a) the Civil War (1861–1865) held back the ongoing processes of industrialization. (b) the Civil War (1861–1865) accelerated the ongoing processes of industrialization. (c) the Civil War (1861–1865)’s demands for […]
Date: September 10th, 2020
According to the Keynesian fixed wage theory, real wages should be a. positively correlated with income. b. not correlated with income. c. fixed. d. negatively correlated with income. ANSWER D
Date: September 10th, 2020
According to the public-choice view, a. laissez-fare is always the best economic policy. b. macroeconomic policymakers are only interested in the social good. c. policymakers often act in irrational ways or out of ignorance. d. politics often trump economic theory in policymaking. e. both c and d. ANSWER D
Date: September 10th, 2020
The decline of the greenback against gold made imports more expensive. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
By 1774, the Southern colonies’ (a) share of total colonial wealth was the lowest. (b) wealth per capita was the highest. (c) land contributed very little to total wealth. (d) depended heavily on immigrant labor. ANSWER (b)
Date: September 10th, 2020
Hughes and Cain (2011) argue that the U.S. regards highly hardworking people and possesses a strong disdain for idle people, especially the rich. These views fuel animosity toward labor unions because unions (a) threaten the private rights of business owners to utilize profits in those fashions they deem desirable. (b) force business owners to divert […]
Date: September 10th, 2020
Which of the following statements about the Keynesian model is correct? a. The economy would achieve full employment if left free from destabilizing government policies. b. Active monetary is always effective while fiscal policies is rarely so. c. Both Keynesians and classicists reach the same policy conclusions, but for different reasons. d. The economy is […]
Date: September 10th, 2020
Between 1945 and 1950, federal expenditures (a) dropped by two-fifths despite the Marshall Plan. (b) dropped by two-fifths because of dissipation of wartime expenditures. (c) increased by two-fifths because of increased spending in private consumer and business markets. (d) increased by two-fifths because of the Marshall Plan. ANSWER (a)
Date: September 10th, 2020
How can banks increase the amount of loanable funds available for private lending? (a) By selling government securities to securities dealers and the Federal Reserve System (b) By buying government securities from securities dealers and the Federal Reserve System (c) By buying stocks, property and other assets to hold on behalf of the banks (d) […]
Date: September 10th, 2020
