Inflation was a problem during the Great Depression. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
The argument that econometric policy evaluation is likely to be misleading if policymakers assume stable economic relationships is known as A) the monetarist revolution. B) the Lucas critique. C) public choice theory. D) new Keynesian theory. ANSWER B
Date: September 10th, 2020
The aggregate supply curve that defines the level of full employment or potential output based on a given amount of resources, efficiency, and technology in the economy is called: A) short-aggregate supply curve. B) long-run aggregate supply curve. C) intermediate aggregate supply curve. D) none of the above. ANSWER B
Date: September 10th, 2020
Risk that is related to the uncertainty about interest rate movements is called A) default risk. B) interest-rate risk. C) the problem of moral hazard. D) security risk. ANSWER B
Date: September 10th, 2020
Everything else held constant, an autonomous easing of monetary policy will cause A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease. ANSWER A
Date: September 10th, 2020
The Lerner Index is a measure of market power that focuses on: A) the ratio of the price of a firm’s product to the price elasticity of demand for the product. B) the share of the market controlled by the X largest firms in the market. C) the sum of the squares of the market […]
Date: September 10th, 2020
Expansionary fiscal policy should be used if: A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above. ANSWER A
Date: September 10th, 2020
Which of the following instruments are traded in a capital market? A) corporate bonds B) U.S. Treasury bills C) negotiable bank CDs D) repurchase agreements ANSWER A
Date: September 10th, 2020
A decrease in the costs of resources or inputs of production would shift the: A) short-run aggregate supply curve rightward. B) short-run aggregate supply curve leftward. C) long-run aggregate supply curve rightward. D) long-run aggregate supply curve leftward. ANSWER A
Date: September 10th, 2020
When a firm is considering whether to buy a new piece of equipment with retained earnings, the amount of interest that could be earned on that money is an explicit cost and should be treated as such. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
