When land across the mountains became available in the early nineteenth century, (a) much of New England was simply abandoned by people primarily interested in farming. (b) live-stock raising, dairying and lumbering kept rural New England from being totally abandoned. (c) very few New England farmers elected to stay in New England. (d) Manufacturing quickly […]
According to Figure 6.1, the period from 1996 to 2011 is particularly remarkable for the rapid growth of ________. A) productivity B) labor input C) output D) capital input ANSWER D
In the classical model, less consumption and more savings would a. increase aggregate supply and output. b. reduces aggregate demand and output.. c. decrease real interest rates and output. d. cause the price level to rise with no effect on output. e. have no effect on output or the price level. ANSWER A
In the Free Banking Era (the period of no central bank), (a) anyone could form a bank if they met the requirements. (b) banks were required to offer free financial services. (c) the federal government rescinded its tax on bank notes. (d) states rescinded their taxes on bank notes. ANSWER (a)
If the central bank increases the money supply at the same time as government spending increases, then: a. interest rates must increase. b. interest rates must decrease. c. income must increase. d. income must decrease. ANSWER C
During World War II, a labor shortage emerged in some markets. New recruits into the civilian labor force included (a) teenage females. (b) married women. (c) retired people 65 years of age or older. (d) all of the above. ANSWER (d)
The evidence with respect to the validity of Ricardian Equivalence ________. A) suggests that it matters little whether government debt is held by the central bank or by the public B) clearly provides support for the argument C) clearly refutes the argument D) is difficult to interpret, since so many factors may affect national saving […]
According to Figure 6.1, the period from 1974 to 1995 is particularly remarkable for the slow growth of ________. A) output per worker B) labor input C) output D) capital input ANSWER A
A current account deficit exists when (a) Government revenue exceeds spending (b) Government spending exceeds revenue (c) Imports exceed exports (d) Exports exceed imports ANSWER (c)
In the New England colonies, (a) long winters, short summers, heavily forested areas, and rocky terrain contributed to a lack of productive farmland; agriculture was a difficult, marginal activity. (b) the great majority of New Englanders engaged in some type of subsistence agricultural activity. (c) most New England farmers subsidized their farm income with some […]
