Which of the following is not a characteristic of the classical system? a. temporary excess demand and supply in labor markets. b. Price flexibility c. Money wage flexibility d. real values, not nominal values, matter ANSWER A
Date: September 10th, 2020
Which of the following was NOT a reason given for opposing the renewal of the charters of the Banks of the United States? (a) The Banks of the United States made too many bad loans. (b) The Banks of the United States were unconstitutional. (c) The Banks of the United States hindered the development of […]
Date: September 10th, 2020
According to the Keynesians, a. an easy-fiscal tight-monetary policy reduces the trade deficit, such as what occurred during the 1980s. b. an easy-fiscal tight-monetary policy mix affects the composition of output by encouraging imports of foreign goods and discouraging U.S. exports, as was experienced during the 1980s. c. there was not a link between the […]
Date: September 10th, 2020
For the late 19th and the first half of the 20th century, which of the following did NOT occur? (a) The demand for foreign goods declined relatively as domestic income expanded. (b) Population soared. (c) Government intervention in market affairs slowed considerably. (d) The competitive economy fueled industrialization in the U.S. ANSWER (c)
Date: September 10th, 2020
Which of the following was NOT a function of the First and Second Banks of the United States? (a) Handling government finances (b) Promoting growth of state banks (c) Helping establish uniform paper currency in the U.S. (d) Keeping state banks in line by presenting their notes ANSWER (b)
Date: September 10th, 2020
According to the Quantity Theory of Money (Chapter 3), the increase in the money supply from $39.7 billion in 1940 to $99.2 billion in 1945 should have fueled strong inflation. However, it did not because (a) the World War II (1941–45) (WWII) economy was operating below full employment levels of production. (b) the WWII economy […]
Date: September 10th, 2020
Which of the following statements is (are) correct? Critics of the real business cycle model a. question whether technology has ever been the cause of a recession. b. do not deny that some technology shocks affect many industries. However, they do not believe that there are enough of these shocks to explain recessions where output […]
Date: September 10th, 2020
In the simple Keynesian model, government spending a. have a smaller multiplier than tax changes. b. can have a larger or smaller multiplier depending upon monetary policy c. have the same multiplier as changes in taxes. d. have a greater multiplier than tax changes. ANSWER D
Date: September 10th, 2020
Land inheritance in the Southern Colonies differed from inheritance in the Middle and New England Colonies in that (a) the policy of primogeniture was followed in the South, which encouraged the formation of large land-holdings, whereas primogeniture was normally not followed outside the South. (b) primogeniture was actually followed throughout the colonies but the crops […]
Date: September 10th, 2020
During the recession of 2001, a. there were a number of proposals for tax increases or spending cuts to stir the economy, but they failed due to worries about their effects on the already large deficit. b. a series of tax cuts were passed, though they only occurred in late 2001. c. all the proposed […]
Date: September 10th, 2020
