By the 1840s, (a) labor had achieved political power in the franchise, i.e., the right to vote. (b) unions per se were not considered by law to be conspiracies and therefore illegal. (c) peaceful picketing of businesses during strikes was considered to be legal. (d) all of the above were true. ANSWER (d)
Date: September 10th, 2020
Historically, the most important cause of government budget deficits is a. cutting taxes. b. printing up too much money. c. financing wars. d. electing liberal politicians. e. business cycles. ANSWER C
Date: September 10th, 2020
Perfect flexible prices are a critical assumption in the a. classical model. b. Keynesian model. c. monetarist model. d. new Keynesian model. e. both a and c. ANSWER E
Date: September 10th, 2020
In the classical model, if money growth and velocity are constant, then: a. the price level will rise at the rate of output growth. b. the price level will be constant. c. the price level will fall at the rate of output growth. d. none of the above. ANSWER C
Date: September 10th, 2020
If government spending and tax collections both increase by the same amount, then according to the classical loanable funds market: a. the demand for loanable funds will increase and the interest rate will rise. b. the demand for loanable funds will fall and the interest rate will rise. c. savings will rise and interest rates […]
Date: September 10th, 2020
In the Keynesian theory of labor supply, price expectations are based a. only on the future behavior of the price level. b. on the past, present, and future behavior of the price level. c. on the present behavior of the price level. d. on the past behavior of the price level. ANSWER D
Date: September 10th, 2020
Unlike previous and future wars, the United States’ federal government did not need to impose an income tax to finance the Civil War (1861–1865). Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assuming a horizontal aggregate supply curve, output will change when a. monetary or fiscal policy changes. b. monetary policy changes. c. fiscal policy changes. d. capital, labor, or technology changes. e. all of the above ANSWER E
Date: September 10th, 2020
In the classical model, a 20 percent increase in the money growth rate leads to: a. a 20 percent inflation rate. b. a 23 percent increase in the inflation rate. c. no change in the inflation rate. d. a 20 percent increase in the inflation rate. ANSWER D
Date: September 10th, 2020
Paper money helped colonists pay soldiers for services provided when specie was not available. This money was fiat money; it did not possess specie backing. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
