If the money supply increases 10-percent, velocity decreases 5-percent, and the price level increases 6-percent, then the change in real GDP is a. 1. b. 4. c. -1. d. 5. ANSWER C
Date: September 10th, 2020
According to the classical model shown in Figure 4.1, an autonomous decline in investment shifts the investment schedule to the left. Furthermore, the equilibrium interest rate declines. Distance B 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 […]
Date: September 10th, 2020
From the Civil War until 1914, what change(s) occurred in U.S. policies regarding tariffs? (a) Tariff rates were generally higher and customs receipts were higher than before the Civil War. (b) As the momentum of the westward movement increased, increased revenues from land sales allowed Congress to return tariff rates to their pre-Civil War levels. […]
Date: September 10th, 2020
Capital and labor are distinct from productivity in that ________. A) productivity is independent of technology changes B) productivity can only increase over time C) productivity is subject to diminishing returns D) capital and labor are subject to diminishing marginal returns ANSWER D
Date: September 10th, 2020
Regional specialization did not emerge in the colonies due to the small size of the cities and towns. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Operation on the basis of comparative advantages implies which of the following? (a) Countries allocate their resources across all sectors regardless of opportunity costs. (b) Countries will specialize even if they can produce everything. (c) Countries not efficient in any production should not trade. (d) none of the above. ANSWER (b)
Date: September 10th, 2020
The command of World War II (1941–45) (a) was more structured than that of World War I (1914–18) (WWI). (b) experienced the same unconstitutionality problems experienced during WWI. (c) was distinct from WWI in most ways. (d) did not involve rationing of goods and services, given the high unemployment of the period. ANSWER (a)
Date: September 10th, 2020
According to the partisan party model, a. the primary emphasis of the liberal party is on full employment and income distribution. b. the liberal party stresses price stability as their most important goal. c. employment stability is most important to the conservative party. d. only two parties exist. e. Both a and d. ANSWER […]
Date: September 10th, 2020
The growth accounting equation suggests that the growth rate of output is equal to the growth rate of ________. A) total factor productivity plus the contributions of both capital and labor B) total factor productivity minus the rate of depreciation C) capital and labor D) the overall population ANSWER A
Date: September 10th, 2020
During the antebellum period, the U.S. used more economic output and resources than were domestically available during expansions and less during contractions. International trade assisted during these cyclical times. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
