In the classical system, output and employment are primarily dependent on a. population, productivity, and technology. b. technology, capital formation, and thrift. c. population, technology, and capital formation. d. productivity, thrift, and population. ANSWER C
Date: September 10th, 2020
According to real business cycle theory, real wages are _____ correlated with employment and the portion of the population that is not in the labor market _____ with higher real wages. a. positively; rises. b. negatively, does not change. c. negatively, rises. d. positively; falls. e. none of the above. ANSWER D
Date: September 10th, 2020
Advocates of the public-choice view argue that elected officials a. will always respond to inflation with expansionary policies but will respond to unemployment with restrictive policies. b. will actively respond to inflation with restrictive policies but are reluctant to respond to unemployment with expansionary policies. c. will always respond to both inflation and unemployment with […]
Date: September 10th, 2020
The simple Keynesian model a. overstated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending. b. understated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and […]
Date: September 10th, 2020
The wartime demand for manufacturing goods directly impacted the economy in which of the following ways? (a) Increased demand for factory workers (b) Increased demand for imported goods (c) Decreased demand for agricultural goods (d) All of the above ANSWER (a)
Date: September 10th, 2020
According to Figure 6.1, in postwar U.S history ________. A) productivity growth was always exceeded by labor growth B) labor growth has always exceeded capital growth C) productivity growth has always exceeded capital growth D) output growth has always exceeded productivity growth ANSWER D
Date: September 10th, 2020
What is/are the advantage(s) of the gold standard? (a) The government can print money as required by cyclical fluctuations in domestic markets. (b) Floating exchange rates. (c) It requires monetary discipline. (d) All of the above. ANSWER (c)
Date: September 10th, 2020
The federal government’s abilities to tax during war- and peace-times are constrained by (a) the need to be re-elected by the voting population. (b) the interests of the non-voting population. (c) the U.S. Constitution. (d) the protected rights of state and local governments to tax. ANSWER (a)
Date: September 10th, 2020
During the colonial period, individual producers (a) were never required to produce specific goods or services. (b) were, at times, required by colonial officials to produce certain staples if they wanted to produce cash crops. For example, the early governors of Virginia directed tobacco producers to also plant wheat. (c) produced only what they were […]
Date: September 10th, 2020
According to Ricardian Equivalence, consumers may not respond to a tax cut ________. A) if that tax cut is directed solely at upper income groups B) if that tax cut is directed solely at lower income groups C) since they understand a tax cut today will lead to a tax increase in the future D) […]
Date: September 10th, 2020
