Productivity is ________. A) determined by central bank policy B) the combined effect of monetary and fiscal policy C) the residual component of the production function D) driven by changes in the rate of growth of output ANSWER C
Date: September 10th, 2020
In the IS-LM model, an increase in government spending in the goods market has an impact on the money market because a. it increases the money supply. b. it increases income, which increases money demand. c. it decreases income, which decreases money demand. d. it increases interest rates, which decreases money demand. e. none of […]
Date: September 10th, 2020
The largest colony in 1770 in both population and claims on hinterlands was (a) Massachusetts (b) Pennsylvania (c) Virginia (d) New York ANSWER (c)
Date: September 10th, 2020
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
The difference between savings and investment is that a. investment is purchasing stock, while savings is putting money in a bank. b. investment is purchasing capital, savings is postponing consumption. c. investment is purchasing assets, while consumption is purchasing goods. d. investment increases output, while savings decreases output. Figure 4.1 ANSWER B
Date: September 10th, 2020
What does international voluntary trade do? (a) Exploits small countries (b) Benefits all trading partners (c) Places labor unions at an unfair disadvantage (d) Forces productive domestic firms to close their doors ANSWER (b)
Date: September 10th, 2020
Private profits provided colonial producers with incentive to direct the use of their regional resources in those fashions that produced the highest yield in world markets. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Monetizing the debt is undesirable given its impact on ________. A) investment B) nominal income C) tariff rates D) prices ANSWER D
Date: September 10th, 2020
New Keynesians and new classical economists both believe that a. people form their expectations rationally. b. aggregate demand movements primarily drive business cycles. c. individual agents engage in optimizing behavior. d. The key source of disagreement centered around how people form their expectations. e. all but d are correct. ANSWER B
Date: September 10th, 2020
Under the gold standard, a country experiencing a fall in its gold reserves was supposed to: (a) Expand loans (b) Buy securities (c) Lower discount rates (d) Cut loans ANSWER (d)
Date: September 10th, 2020
