According to the partisan theory, a. politicians are viewed as working only for their own welfare. b. there are two parties with flexible goals. c. moderates and liberals often switch political goals. d. macroeconomic policy is not a key focus of most politicians. e. none of the above. ANSWER A
Date: September 10th, 2020
In the industrial period of U.S. history, the manufacturing goods consumed by U.S. households were subject to (a) high taxes. (b) Engel’s Law. (c) income effects. (d) none of the above. ANSWER (c)
Date: September 10th, 2020
According to the classical model shown above, an autonomous decline in investment shifts the investment schedule to the left. Furthermore, the equilibrium interest rate declines. Distance A describes an interest rate induced a. decline in saving, which is an equal increase in consumption. b. increase in investment. c. decrease in investment. d. decline in saving, […]
Date: September 10th, 2020
If the government wanted to reduce interest rates without changing output, it should a. increase consumption and reduce the money supply. b. increase the money supply and raise government spending. c. increase the money supply and raise taxes. d. both b and c. ANSWER C
Date: September 10th, 2020
Which of the following was a source of the U.S. federal government’s financial revenue for World War II (1941–45)? (a) Tariffs (b) Bond sales to other governments (c) Bond sales to the Federal Reserve System (d) Bond sales to the U.S. Congress ANSWER (c)
Date: September 10th, 2020
Keynesians believe in a. active management of structural deficits an minimal cyclical deficits. b. running structural budget deficits to stimulate output c. running large surpluses during expansions. d. active management of cyclical deficits and minimal structural deficits. e. both c and d. ANSWER E
Date: September 10th, 2020
As cities grew and markets developed, life, fire and death insurance companies emerged to manage risks and help groups of individuals during disasters. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Productivity growth can be measured ________. A) by dividing output by Kt0.3 Lt0.7 B) by adding the contributions from capital growth and labor growth C) by subtracting the contributions from capital growth and labor growth from the growth of output D) by dividing the growth of output by the contributions from capital growth and labor […]
Date: September 10th, 2020
Which one of the following economic activities was NOT generally undertaken in New England in the colonial period? (a) Fishing (b) Farming (c) Tobacco production (d) Shipbuilding ANSWER (c)
Date: September 10th, 2020
In a study of whether prices are sticky or not, Alan Blinder supervised interviews of corporate executives on the frequency with which their firms change prices and found that a. 55 percent of firms changed prices only once a year or less. b. over 20 percent of the firms changed prices more than 12 times […]
Date: September 10th, 2020
